I'm also not sure if I follow the out-of-band economic logic.
Let's imagine blocks fit exactly 10 transactions and they're all equal size. Alice needs to get their closing transaction in on time and has two options:
1. Use CPFP by paying a fee rate based on what the mempool shows, such that the combined child and parent make it into slot 9 and 10.
2. Pay the miner out of band to get the parent in slot 10, without a child transaction.
A miner would only do this if they can earn more than the fees in slot 11.
So it depends on the slope in fees. In a high fee environment I would expect this slope to be fairly low at the 4 VMB edge. But haven't run the numbers.
provoost / Sjors Provoost
npub1s6z…wk4c
2024-01-01 12:53:15
in reply to nevent1q…j06m
Author Public Key
npub1s6z7hmmx2vud66f3utxd70qem8cwtggx0jgc7gh8pqwz2k8cltuqrdwk4cPublished at
2024-01-01 12:53:15Event JSON
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"content": "I'm also not sure if I follow the out-of-band economic logic.\n\nLet's imagine blocks fit exactly 10 transactions and they're all equal size. Alice needs to get their closing transaction in on time and has two options:\n\n1. Use CPFP by paying a fee rate based on what the mempool shows, such that the combined child and parent make it into slot 9 and 10.\n\n2. Pay the miner out of band to get the parent in slot 10, without a child transaction.\n\nA miner would only do this if they can earn more than the fees in slot 11.\n\nSo it depends on the slope in fees. In a high fee environment I would expect this slope to be fairly low at the 4 VMB edge. But haven't run the numbers.",
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