1. A Treatment of EIP-1559: Enhancing Transaction Fee Mechanism through Nth-Price Auction
- Author
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Li, Kun, Qi, Guangpeng, Shang, Guangyong, Deng, Wanli, Xu, Minghui, and Cheng, Xiuzhen
- Subjects
Computer Science - Distributed, Parallel, and Cluster Computing ,Computer Science - Computer Science and Game Theory - Abstract
With the widespread adoption of blockchain technology, the transaction fee mechanism (TFM) in blockchain systems has become a prominent research topic. An ideal TFM should satisfy user incentive compatibility (UIC), miner incentive compatibility (MIC), and miner-user side contract proofness ($c$-SCP). However, state-of-the-art works either fail to meet these three properties simultaneously or only satisfy them under certain conditions. In this paper, we propose a burning $N$-price auction TFM named BNP. This mechanism divides the transaction fee into a base fee, which is burned, and a priority fee, which is allocated to miners. Theoretical proofs and experimental analyses demonstrate that, even under conditions of significant transaction congestion, this mechanism satisfies UIC, MIC, and $c$-SCP simultaneously. Furthermore, the BNP mechanism is not constrained by the type of blockchain consensus, making it widely applicable.
- Published
- 2024