Arcurus

[Draft] How we could use demurrage fees as transaction fees and what benefits this would bring - Soft Fork

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How we could use demurrage fees as transaction fees and what benefits this would bring:

 

Theoretically it would be possible to use the demurrage fee as transaction fee.

This could look like this:

In an given block a part* of the block-reward is assigned to transactions as additional paid fee*** according to how much demurrage they pay (similar to coin age the transaction destroys). 

This could be implemented as soft fork.

This would help also to reduce that transactions get stuck because of not paying enough fees.

As benefit this would also increase temporally the block reward and therefore attract more mining power** if more transactions need to be confirmed, and lower the reward if less transactions need to be confirmed. This would therefore increase the blocktime on days where lot of transactions need to be confirmed and reduce on days when less transactions need to be confirmed. As side effect this would increased the capacity in case of need and reduce in case of not need, and therefore balance out the transaction fees (more easy to calculate).  

 

 

* the more Freicoin is used the higher this percentage could be

* in practice the exact in this way assigned block reward should be averaged over a longer time period like 2 weeks

* it would be good to use the log(demurrage) instead of demurrage for this distribution, this would benefit users that transact regularly.

** only if in competition for mining power with other coins

***  it could be good practice to distribute the fees over the next X lets say 10 blocks, so that an individual miner has not much benefit in creating more transactions to get more fees then other miners.

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