Miner reserve price represents the minimum price at which cryptocurrency miners are willing to sell their newly minted or held digital assets. This price is influenced by their operational costs, including electricity and hardware depreciation, as well as their strategic market outlook. When the market price falls below this reserve, miners may choose to hold their assets, potentially reducing selling pressure, or even cease operations if sustained. It represents a critical economic threshold for mining profitability and network security.
Context
Miner reserve price is a key metric discussed in market analysis and crypto news, particularly during periods of price volatility. Changes in energy costs or mining difficulty can significantly impact this price, leading to shifts in miner behavior. Observing the aggregate miner reserve price can offer insights into potential market bottoms or supply dynamics, influencing investor sentiment.
A new 'off-chain influence proofness' criterion exposes EIP-1559's vulnerability, necessitating a cryptographic second-price auction with on-chain miner reserves.
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