Bayesian Mechanism Design for Blockchain Transaction Fee Allocation
Fuente:
arXiv
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| Autores principales: | , , , |
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| Formato: | Preprint |
| Publicado: |
2022
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| _version_ | 1866908170525343744 |
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| author | Chen, Xi Simchi-Levi, David Zhao, Zishuo Zhou, Yuan |
| author_facet | Chen, Xi Simchi-Levi, David Zhao, Zishuo Zhou, Yuan |
| contents | In blockchain systems, the design of transaction fee mechanisms is essential for stability and satisfaction for both miners and users. A recent work has proven the impossibility of collusion-proof mechanisms that achieve both non-zero miner revenue and Dominating-Strategy-Incentive-Compatible (DSIC) for users. However, a positive miner revenue is important in practice to motivate miners. To address this challenge, we consider a Bayesian game setting and relax the DSIC requirement for users to Bayesian-Nash-Incentive-Compatibility (BNIC). In particular, we propose an auxiliary mechanism method that makes connections between BNIC and DSIC mechanisms. With the auxiliary mechanism method, we design a transaction fee mechanism (TFM) based on the multinomial logit (MNL) choice model, and prove that the TFM has both BNIC and collusion-proof properties with an asymptotic constant-factor approximation of optimal miner revenue for i.i.d. bounded valuations. Our result breaks the zero-revenue barrier while preserving truthfulness and collusion-proof properties. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2209_13099 |
| institution | arXiv |
| publishDate | 2022 |
| record_format | arxiv |
| spellingShingle | Bayesian Mechanism Design for Blockchain Transaction Fee Allocation Chen, Xi Simchi-Levi, David Zhao, Zishuo Zhou, Yuan Computer Science and Game Theory In blockchain systems, the design of transaction fee mechanisms is essential for stability and satisfaction for both miners and users. A recent work has proven the impossibility of collusion-proof mechanisms that achieve both non-zero miner revenue and Dominating-Strategy-Incentive-Compatible (DSIC) for users. However, a positive miner revenue is important in practice to motivate miners. To address this challenge, we consider a Bayesian game setting and relax the DSIC requirement for users to Bayesian-Nash-Incentive-Compatibility (BNIC). In particular, we propose an auxiliary mechanism method that makes connections between BNIC and DSIC mechanisms. With the auxiliary mechanism method, we design a transaction fee mechanism (TFM) based on the multinomial logit (MNL) choice model, and prove that the TFM has both BNIC and collusion-proof properties with an asymptotic constant-factor approximation of optimal miner revenue for i.i.d. bounded valuations. Our result breaks the zero-revenue barrier while preserving truthfulness and collusion-proof properties. |
| title | Bayesian Mechanism Design for Blockchain Transaction Fee Allocation |
| topic | Computer Science and Game Theory |
| url | https://arxiv.org/abs/2209.13099 |