Blocksize – What is a toll market? Does that mean that the blocks should be full, especially after several halvenings?

The fee market refers to the tension between

  • 1) Users who want to have their transactions confirmed as soon as possible and …
  • 2) Miners who can only mine blocks with fixed confirmation capacity (1mb, 4mWeight).

Of course it is in the interest of a miner to build a block from the mempool for mining, which will give the maximum block reward for the miner.

So when blocks are full, this tension between the demand for acknowledgment and a limited supply of block space is resolved at a certain price. At a certain price, there may or may not be a miner willing to include a particular transaction in his next block. If not, only the (clearing) price at which the transactions are confirmed must be taken into account.

The fee market is therefore between confirmation seekers (users) and confirmation providers (miners).

If the charges increase because the blocks are full, certain transaction amounts with Bitcoin become impossible because the fees in relation to the transaction amount are too high. Therefore, the remaining transactions will of course have higher amounts which still justify the market price. As long as the acknowledgment capacity is limited and fixed, this remains.

This has nothing to do with Halvenings. The inflation / subsidy program obviously contributes to the reward of a miner, but is independent of transaction demand and represents a first mechanism for the distribution of coins.