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+---- Thread: Why No Transaction Fee Mechanism Can Truly Be Collusion-Proof (/showthread.php?tid=6304945)
Why No Transaction Fee Mechanism Can Truly Be Collusion-Proof - Stanley - Aug 4, 2025
Why No Transaction Fee Mechanism Can Truly Be Collusion-Proof
This article breaks down the key incentive-compatibility notions in transaction fee mechanisms (TFMs), including UIC, MIC, SCP (global and c-SCP), and OCA-proofness. It compares their implications for miner and user behavior in blockchain systems, with special reference to Ethereum’s EIP-1559 and other proposed mechanisms. The article also highlights key impossibility results showing that no TFM can satisfy all desirable incentive properties, particularly under collusion scenarios. Whether you’re a researcher or protocol designer, this is your shortcut to understanding what’s truly achievable in decentralized fee markets.
https://hackernoon.com/why-no-transaction-fee-mechanism-can-truly-be-collusion-proof?source=rss