Dan I, Andreas, Tech Intech discussed on Unchained
Opportunity WanNa go grab some chests. Back to my conversation with Andreas and Dan. So Dan I was so curious this was something that I was you know kind of looking into before the show. So you know as he mentioned at a certain point when the block rewards stops, there will be a transition where miners will be compensated in transaction fees not in the block reward and the current amount that they earn is from fees is about nine percent of the block reward. and. So we'd have to see transaction fees, eleven x by a roughly twenty one forty, which is when the new bitcoins will stop being minted but I just wondered if we don't see. Like an increase in the amount of transactions that can at layer one than can transaction fees eleven x in that time or or will that require people to pay a lot more per transaction A great question and when I'm not sure how many people who are listening to listening to this work in Tech Intech we have something called are occupied by a key performance indicator in we use it as a calibration methods who coordinator efforts at a company and use that metric to define success. For example, they might be user sign ups or number of users trading at cracking, etc.. The. KPI. For this for what we're looking at right now, which the the question we're trying to answer is are transaction fees replacing the block subsidy in the block award. So our newly minted coins are the as those decrease is that value being replaced by the subsidy and so we can. We can calculate that would be a primary KPI so you could look at. Transaction fees over the subsidy transaction fees block divided by the subsidy and you brought up the that's at nine percent. If we look at that, historically, we make like a rolling sixty days to smooth it out a little bit and we look at this over time on a log curve. It's very much trending in the right direction where eleven x sounds like a lot. But bitcoin moves in really intense cycles where we've all seen it go from thousand, Ten, thousand or twenty thousand when that happens that means there's not an equivalent but a directional rise in transactions and transaction fees and we have seen the transit.