Zero miner revenue describes a hypothetical or actual scenario where the financial rewards for cryptocurrency miners fall to zero, making mining economically unviable. This can occur if transaction fees are negligible and block rewards cease or become insufficient to cover operational costs. Such a situation would severely compromise the security of a Proof-of-Work network.
Context
Zero miner revenue is a critical concern in long-term discussions about the sustainability of Proof-of-Work blockchains, especially as block rewards diminish over time. News often covers analyses and debates on how networks will maintain security solely through transaction fees, or if alternative incentive models will be necessary. This concept is central to understanding the economic security model of major digital assets.
No deterministic transaction fee mechanism can be simultaneously user-incentive compatible, miner-incentive compatible, and collusion-resistant without being trivial.
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