Subject: Re: [bitcoindev] Mandatory Inclusion of Old Transactions in Blocks

From: Michael Cassano <[email-masked]>
Date: Sat, 28 Dec 2024 09:15:42 -0700

I reject the premise of this proposed BIP.  Mandating miners to include a
specific percentage of transactions based on age fundamentally undermines
the core principles of Bitcoin: decentralization, voluntary participation,
and free market dynamics.

Bitcoin thrives because of its permissionless, free-market system. Miners
are incentivized to prioritize transactions based on fees and network
conditions, not arbitrary mandates. Imposing a rule like this introduces
central planning into what is a decentralized system.

The proposal claims to fight centralization, but will likely backfire.
Mandates like this add operational complexity and reduce efficiency for
miners. Smaller miners, who are already operating on thin margins, will be
disproportionately impacted, driving them out of the market and further
centralizing mining power. If censorship-resistant mining is valuable, let
the free market reward those who provide it.  If there’s demand for miners
to include old or low-fee transactions, let someone build tools and pools
that prioritize this voluntarily.  Solutions shall arise from innovation,
not coercion.

Best regards,
Mike

On Sat, Dec 28, 2024 at 8:58 AM developer <[email-masked]> wrote:

> Status: Draft
> Type: Standards Track
> Created: December 27, 2024
> Abstract
>
> This proposal mandates miners to include at least 0.1% of transactions in
> their blocks from the oldest transactions by date, even if they have low
> fees. This mechanism helps prevent mining centralization and censorship,
> encouraging miners not to exclude certain transactions.
> Motivation
>
> The increasing centralization of Bitcoin mining and potential regulations
> that may require miners to censor or exclude certain transactions pose a
> threat to the Bitcoin network. Mandating the inclusion of a small
> percentage of old transactions, even with low fees, ensures that no single
> miner can censor block contents without sacrificing their own rewards.
> Specification
>
>     Mandatory Inclusion of Old even if with Low-Fee Transactions
>         Each miner is required to include at least 0.1% of the total
> transactions in a block from the oldest transactions in the mempool, even
> if their fees are below the current market average.
>         These transactions must be added to blocks regardless of their
> fees, prioritizing their age.
>
>     Block Validation
>         Bitcoin network nodes will validate blocks only if they contain
> the required percentage of old transactions.
>         If a block fails to meet this criterion, it will be deemed invalid
> and rejected by the network.
>
>     Incentives
>         Miners are incentivized to include these transactions to ensure
> their blocks are valid and to avoid losing block rewards.
>
> Advantages
>
>     Censorship Resistance: Miners cannot censor transactions without
> forfeiting their rewards.
>     Greater Inclusivity: Old and low-fee transactions are assured of being
> confirmed.
>     Decentralization Prevention: Reducing the potential for centralized
> censorship keeps the Bitcoin network decentralized.
>
> Considerations
>
>     Impact on the Mempool: The mempool may become more dynamic and
> up-to-date with fewer old, stagnant transactions.
>     Resource Management: Miners will need to adjust their systems to
> automatically identify and include relevant transactions.
>
> Conclusion
>
> Implementing this BIP will help maintain the integrity and
> decentralization of the Bitcoin network, preventing censorship and ensuring
> all transactions have a fair chance of confirmation.
>
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