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It's proportional to the value a miner is awarded (ie: block reward + transaction fess) for mining a block not the price of the coin. Saying it is the price of
by pmorici 5y ago
It's proportional to the value a miner is awarded (ie: block reward + transaction fess) for mining a block not the price of the coin. Saying it is the price of the coin is like saying Berkshire Hathaway is worth more than Apple because their share price is a lot higher.
- lvs 5y agoNo, I think you misunderstand. The rewards are predictable, and fees are generally a tiny fraction of the total reward (a few percent or less). The exchange rate vs the price of electricity is what determines whether it's profitable to consume electricity to hash for a PoW chain. There are some efficiency hacks like merged mining that improve the situation a bit, but essentially the person you're downvoting is totally correct.
- drdeca 5y agofor Ethereum, my understanding is that the proportion from fees has been a substantial proportion (like, over 15%? idr the exact proportion, but I'm reasonably sure it is at least 15% ) for over a year.