Day: February 12, 2022

Optimal Cryptocurrency Design : Seigniorage versus Transaction Fees | Blockchain@X
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Optimal Cryptocurrency Design: Seigniorage versus Transaction Fees

This paper studies how transaction fees and seigniorage, equivalent to inflation in the cryptocurrency setting, affect miner incentives and trade congestion. Each cryptocurrency miner chooses how many new transactions to group into the next block of transactions that the miner competes to validate. The successful miner earns (i) transaction fees…

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