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31 sats \ 9 replies \ @okpj 18 Nov 2023 \ parent \ on: 1 to 1000 Taproot UTXO Explosion. Why? bitcoin
Both of the blocks those tx were confirmed in were mined by f2pool
yeah, I wonder if it's f2 specifically doing some shenanigans...
This kind of transaction that outputs 294 sats at the cost of 32,220 sats to a miner fee only makes sense if you are the one mining the transaction--and seeing this being done thousands of times... super sus.
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but then I see these appearing in MARA and Foundry... super odd...
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Did a little digging using Ordpool—
brc-20 token minting — all of them. You can look the tx up in Ordpool to confirm. So not miner collusion, just shitcoins.
{"p":"brc-20","op":"mint","tick":"dfsn","amt":"5"}
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Thanks! I find this usage to be totally insane but I guess it’s a thing people want to do. So bizarro.
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Once Binance listed ORDI it was game on I think.
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maybe they've calculated it forward and realized that by doing this kind of operation, it doesn't matter who collects the fees because the increased block fees are giving every block an additional 2BTC+ so they make it up and then some every time they successfully mine a block.
Interesting case for decentralized collusion.
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And I guess having more pools wouldn't help, because they could all still collude and achieve the same result. It would just be harder for a larger set of entities to collude.
But doesn't the prisoner's dilemma work against such collusion?
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Does it? If you spend .25BTC every 5 blocks in order to pump the average fee price in the mempool, you mine 1/5 of the blocks, you recapture some of that spend, and ensure that when you do mine a block, you get an extra 2-3BTC in fees. Has someone done a robust modeling of the trade-off for a large miner to engage in this kind of behavior?
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And what if you don't spend extra, will you not get an extra 2-3 BTC in fees because the others did?
Sorry if I'm not making sense, I haven't thought much about it and am just thinking out loud.
If there are indeed incentives for collusion, wouldn't this be a long term solution to the security budget issue? They would be incentivized to spend even more for even higher block rewards, but not so much that Bitcoin becomes useless and loses value.
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