In this post, I’ll attempt to summarize my current understanding of how to think about incentive compatibility, which has evolved over the past year while working on the cluster mempool project[1]. Motivating questions Given a mempool with many transactions, which ones should be selected in the next block? Assuming there’s more than one miner on the network[2], the incentive is to maximize the next block’s fees[3] given the block size constraints. Of course, once the next block is found...
