3 ms·
It's just a mechanism to incentivize mining. The alternative is that miners are paid only via fees, but that risks making it prohibitively expensive to transact
by ulrikrasmussen 6mo ago
It's just a mechanism to incentivize mining. The alternative is that miners are paid only via fees, but that risks making it prohibitively expensive to transact. Minting new coins distributes the cost of mining over all holders by inflating the currency a little bit. Fees are still necessary to avoid spamming.
- tardedmeme 6mo agoBitcoin was intended to be funded entirely by transaction fees and the minting was just to jumpstart the currency, which is why the new coin minting rate tends to zero. This was a naïve mistake. Other cryptocurrencies have start high and approach a lower nonzero value.
- hggh 6mo ago> Bitcoin was intended to be funded entirely by transaction fees Transaction fees used to be free, but miners started to require at least 1 sat/b, to prevent "spamming" the mempool, so... no.