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And Gwei almost hit $1k! Triggered by the rush of eth holders to the exit. None of the proposed eips do anything to de-incentivize "surge pricing" in mining rew

And Gwei almost hit $1k! Triggered by the rush of eth holders to the exit. None of the proposed eips do anything to de-incentivize "surge pricing" in mining rewards during "bank panics". It would be counter-productive to growing the network. But an interesting economic phenomenon to watch in real time just the same. Akin to price gouging gasoline during a hurricane ;)

everfree 5y ago
> And Gwei almost hit $1k! You mean Ethereum gas prices almost hit 1k Gwei? > None of the proposed eips do anything to de-incentivize "surge pricing" in mining rewards during "bank panics". I'm assuming that you're talking about gas price surges, as gas prices don't directly correlate with mining rewards (since EIP-1559 was implemented). What sort of mechanism would you propose to disincentivize surge pricing? Block space is a limited resource that's auctioned off, so a naive price cap would come with its own whole set of problems. I have never heard of a fair way to disincentivize surge pricing, but if you have an idea, I would love to hear it!
- ArtWomb 5y ago
  Well, even the NYSE uses "circuit breakers". But that's no solution ;) https://www.nyse.com/network/article/nyse-increases-resiliancy-during-extreme-volatility https://www.nyse.com/network/article/nyse-increases-resilian...
  - everfree 5y ago
    It's much different to shut down the trade of assets than to shut down a cloud computing service (Ethereum). That would be very counterproductive, like shutting down the freeway because of a traffic jam, or stopping a train service because the seats are sold out. It just means that the backbone has to work even harder to clear the backlog once it's back online.
deleted 5y ago
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clippablematt 5y ago
EIP4488 on call data expansion would result in cheaper rollup transactions. 1559 means that in mad rushes, excessive fees get burned instead of given to miners. Both of these things help combat gas prices and dampen runaway auctions. But ultimately there’s not a lot you can do to stop people who want to outbid others for faster inclusion, without introducing other ordering rules which are hard to agree on and seem to usually introduce dos vectors.

everfree 5y ago

> And Gwei almost hit $1k! You mean Ethereum gas prices almost hit 1k Gwei? > None of the proposed eips do anything to de-incentivize "surge pricing" in mining rewards during "bank panics". I'm assuming that you're talking about gas price surges, as gas prices don't directly correlate with mining rewards (since EIP-1559 was implemented). What sort of mechanism would you propose to disincentivize surge pricing? Block space is a limited resource that's auctioned off, so a naive price cap would come with its own whole set of problems. I have never heard of a fair way to disincentivize surge pricing, but if you have an idea, I would love to hear it!

ArtWomb 5y ago
Well, even the NYSE uses "circuit breakers". But that's no solution ;) https://www.nyse.com/network/article/nyse-increases-resiliancy-during-extreme-volatility https://www.nyse.com/network/article/nyse-increases-resilian...
- everfree 5y ago
  It's much different to shut down the trade of assets than to shut down a cloud computing service (Ethereum). That would be very counterproductive, like shutting down the freeway because of a traffic jam, or stopping a train service because the seats are sold out. It just means that the backbone has to work even harder to clear the backlog once it's back online.

deleted 5y ago

[deleted]

clippablematt 5y ago

EIP4488 on call data expansion would result in cheaper rollup transactions. 1559 means that in mad rushes, excessive fees get burned instead of given to miners. Both of these things help combat gas prices and dampen runaway auctions. But ultimately there’s not a lot you can do to stop people who want to outbid others for faster inclusion, without introducing other ordering rules which are hard to agree on and seem to usually introduce dos vectors.