Re: [Bitcoin-development] Proposed alternatives to the 20MB step function

[Alex Mizrahi <alex.mizrahi@gmail.com>]

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Adaptive schedules, i.e. those where block size limit depends not only on
block height, but on other parameters as well, are surely attractive in the
sense that the system can adapt to the actual use, but they also open a
possibility of a manipulation.

E.g. one of mining companies might try to bankrupt other companies by
making mining non-profitable. To do that they will accept transactions with
ridiculously low fees (e.g. 1 satoshi per transaction). Of course, they
will suffer losees themselves, but the they might be able to survive that
if they have access to financial resources. (E.g. companies backed by banks
and such will have an advantage).
Once competitors close down their mining operations, they can drive fees
upwards.

So if you don't want to open room for manipulation (which is very hard to
analyze), it is better to have a block size hard limit which depends only
on block height.
On top of that there might be a soft limit which is enforced by the
majority of miners.

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