Miner fees are a key component in the incentive scheme of properly running Blockchains’ decentralized transaction processing. In determining how fees work, we should consider many different goals: Efficient allocation, simplicity for users, and robustness to possible manipulation vectors. We consider this problem through the lens of auction theory, and characterize the tradeoffs different mechanisms may offer, in particular w.r.t. the threat of miner-user collusion.
The talk is based on joint works with Aviv Yaish, Matheus Ferreira, and Max Resnick.
