“Come on you apes, you want to live forever?” -Jean Rasczak
The great Jason Hughes, for whom we must thank for our existence, says he sees little to no support for BIP110. If we took him at his word, we would have no reason to mine blocks signaling for BIP110. From our perspective, there is an overwhelming market demand for BIP110. First let us clarify what we mean by a market demand. Market demand is not determined by large industry suppliers, i.e. the large mining pools. Large industry suppliers are often slower to react to the demands of the market than smaller upstart suppliers like us. To try to gauge what the market wants by looking to what the larger suppliers are providing leaves one with a massive blind spot. Market demand can only be determined by the users. Then the question becomes, who are the users?
The users of Bitcoin, from a miner’s perspective, are the ones who are demanding blocks and it is them alone who will determine whether BIP110 is implemented. Countless plebs running nodes and small to medium sized businesses have come forward and said they are running BIP110 and they are using those nodes to transact on the Bitcoin network. There is a market demand for BIP110 blocks, plain and simple. The question is, who will supply those blocks? We are happy to be one of those suppliers. Whether our competitors in the mining space join us to meet that market demand is a question they must answer on their own. Unfortunately for us, we don’t think we will be the only ones responding to this market demand. We think there are other miners who will get in on the action and satisfy what the market wants.
What if we’re wrong and there is no market demand for BIP110 blocks? If the market tells us they’re not interested in the blocks we are mining, we will stop mining them. It is the users we are looking to to determine what the best course of action is. Large treasury companies who don’t self-custody their coins are not a good gauge of what users want. Large established industry players are not a good gauge of the current demands of users. To summarize, we mine BIP110 blocks because we think there is a demand for BIP110 blocks. After mandatory signaling, we think that demand remains even if other suppliers don’t see it yet. The market will determine whether we continue mining BIP110 blocks; not influencers, not other suppliers, not large businesses who are out of touch with Bitcoiners and their needs.
Is BIP110 a 100% certainty? No. We think it’s more likely than not to happen. But if it was a certainty, we wouldn’t be having so much fun!
I'm curious what you will do if come activation (block 965664) less than 10% of blocks are signalling for BIP 110. Or to put more of a point on it: what will you do if there is a chain split where the BIP 110 signalling side has less than 10% of hash?
How will you gauge how much demand for BIP 110 blocks there is?
Fees might be one way of gauging such demand, but before a difficulty adjustment and if there is less than 10% mining BIP 110, there may be a significant time interval between blocks. Fees could be quite high with relatively low demand.
But if it is a chainsplit, one might also consider that fees could be high because users don't value their coins on the BIP 110 side as highly as they used to value their BTC coins.
I find this difficult to resolve, and if I was a miner on such a split, I'm not sure how I would gauge user demand.
They may be paying a premium comparing raw numbers, but the premium would be paid in RDTS-coin, which depending on demand for that new nascent currency may well translate to a discount. Additionally, the block rewards will only mature after 100 confirmations which will take a week at 10% of the hashrate, but ten weeks with 1% of the hashrate.
Are you saying miners shouldn't look only at the nominal sats being paid and instead consider the how much value those sats have? Stay tuned for our next article where we make the case that rational miners will reject arbitrary data.
“Come on you apes, you want to live forever?” -Jean Rasczak
The great Jason Hughes, for whom we must thank for our existence, says he sees little to no support for BIP110. If we took him at his word, we would have no reason to mine blocks signaling for BIP110. From our perspective, there is an overwhelming market demand for BIP110. First let us clarify what we mean by a market demand. Market demand is not determined by large industry suppliers, i.e. the large mining pools. Large industry suppliers are often slower to react to the demands of the market than smaller upstart suppliers like us. To try to gauge what the market wants by looking to what the larger suppliers are providing leaves one with a massive blind spot. Market demand can only be determined by the users. Then the question becomes, who are the users?
The users of Bitcoin, from a miner’s perspective, are the ones who are demanding blocks and it is them alone who will determine whether BIP110 is implemented. Countless plebs running nodes and small to medium sized businesses have come forward and said they are running BIP110 and they are using those nodes to transact on the Bitcoin network. There is a market demand for BIP110 blocks, plain and simple. The question is, who will supply those blocks? We are happy to be one of those suppliers. Whether our competitors in the mining space join us to meet that market demand is a question they must answer on their own. Unfortunately for us, we don’t think we will be the only ones responding to this market demand. We think there are other miners who will get in on the action and satisfy what the market wants.
What if we’re wrong and there is no market demand for BIP110 blocks? If the market tells us they’re not interested in the blocks we are mining, we will stop mining them. It is the users we are looking to to determine what the best course of action is. Large treasury companies who don’t self-custody their coins are not a good gauge of what users want. Large established industry players are not a good gauge of the current demands of users. To summarize, we mine BIP110 blocks because we think there is a demand for BIP110 blocks. After mandatory signaling, we think that demand remains even if other suppliers don’t see it yet. The market will determine whether we continue mining BIP110 blocks; not influencers, not other suppliers, not large businesses who are out of touch with Bitcoiners and their needs.
Is BIP110 a 100% certainty? No. We think it’s more likely than not to happen. But if it was a certainty, we wouldn’t be having so much fun!
Thanks for posting this here!
I'm curious what you will do if come activation (block 965664) less than 10% of blocks are signalling for BIP 110. Or to put more of a point on it: what will you do if there is a chain split where the BIP 110 signalling side has less than 10% of hash?
If there's a chain split, we mine BIP110 if there's a demand for BIP110 blocks. The users determine if we keep mining not the other miners.
How will you gauge how much demand for BIP 110 blocks there is?
Fees might be one way of gauging such demand, but before a difficulty adjustment and if there is less than 10% mining BIP 110, there may be a significant time interval between blocks. Fees could be quite high with relatively low demand.
But if it is a chainsplit, one might also consider that fees could be high because users don't value their coins on the BIP 110 side as highly as they used to value their BTC coins.
I find this difficult to resolve, and if I was a miner on such a split, I'm not sure how I would gauge user demand.
You're overthinking it. If users are willing to pay a premium for a BIP110 confirmation, greedy miners will rush in to collect that premium.
They may be paying a premium comparing raw numbers, but the premium would be paid in RDTS-coin, which depending on demand for that new nascent currency may well translate to a discount.
Additionally, the block rewards will only mature after 100 confirmations which will take a week at 10% of the hashrate, but ten weeks with 1% of the hashrate.
Are you saying miners shouldn't look only at the nominal sats being paid and instead consider the how much value those sats have? Stay tuned for our next article where we make the case that rational miners will reject arbitrary data.
I don’t see your neck to see how rough it looks
https://twiiit.com/Roughnecks110/status/2077762515199779223