It would also reduce the blocksize and significantly reduce the transaction throughput, but blockspace demand right now is just a little less than blockspace production. So I would expect the feerates to explode again like they did in 2024 and 2017. While I’ve expected for a very long time that small payments would get priced out over time, such a move would probably make transactions very expensive immediately. What should then be the next move after that?

Murch

If you think a blocksize decrease or removing the segwit discount should be considered, why do you think that would be expected to lead to an improvement? And what improvements and other effects would you expect?

I know this question wasn't directed at me, but here are my thoughts anyway:

I think that the witness discount distorts incentives, since it makes inscriptions significantly cheaper compared to any other kind of transaction. Large inscriptions also lead to bigger blocks.

If the witness discount were removed, data embedding would probably shift to the less harmful OP_RETURN outputs, since this would then be the cheapest way.

bitcoin

dathonohm releases BIP 110/RDTS activation client v0.1

Scoresby

> If you think a blocksize decrease or removing the segwit discount should be considered, why do you think that would be expected to lead to an improvement? And what improvements and other effects would you expect?

I know this question wasn't directed at me, but here are my thoughts anyway:

I think that the witness discount distorts incentives, since it makes inscriptions significantly cheaper compared to any other kind of transaction. Large inscriptions also lead to bigger blocks.

If the witness discount were removed, data embedding would probably shift to the less harmful OP_RETURN outputs, since this would then be the cheapest way.