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> The higher the transaction fees, the more validators earn. Not really. 95% of the gas fees get burned and do not go to the validators at all. Only the 'tip'
by yokem55 3y ago
> The higher the transaction fees, the more validators earn.
Not really. 95% of the gas fees get burned and do not go to the validators at all. Only the 'tip' or 'priority fee' goes to the validators and even that is barely anything. Most of the transaction related income validators get is from MEV - basically bribes to order transactions in the block in a particular manner allowing arbitrageurs to extract additional value. These bribes are somewhat correlated to the level of the gas fees, but not always.
- jongjong 3y agoAny Proof of Stake system, by its design will reward validators in accordance to supply and demand for compute. Transaction and compute fees underpin the entire security of PoS. The fees necessarily grow proportionally to demand for compute, because, in a fully replicated architecture such as Ethereum, supply of compute is limited by the slowest allowable node in the network. Since supply of compute is inelastic, it means that demand for compute fully determines fees + MEV. Any effort to scale the network would result in supply elasticity and would therefore cause fees + MEV to drop which would go against the interests of those who provide the validation service and earn the fees + MEV.