Collusion-Resilience in Transaction Fee Mechanism Design

ePrint Report: Collusion-Resilience in Transaction Fee Mechanism Design

Hao Chung, Tim Roughgarden, Elaine Shi

Users bid in a transaction fee mechanism (TFM) to get their transactions included and confirmed by a blockchain protocol. Roughgarden (EC'21) initiated the formal treatment of TFMs and proposed three requirements: user incentive compatibility (UIC), miner incentive compatibility (MIC), and a form of collusion-resilience called OCA-proofness. Ethereum's EIP-1559 mechanism satisfies all three properties simultaneously when there is no contention between transactions, but loses the UIC property …

blockchain compatibility design eprint report fee mechanism mic miner protocol report requirements resilience shi tim transaction transactions