Bayesian Mechanism Design for Blockchain Transaction Fee Allocation

Fuente: arXiv
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Autores principales: Chen, Xi, Simchi-Levi, David, Zhao, Zishuo, Zhou, Yuan
Formato: Preprint
Publicado: 2022
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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