An Onchain Implementation Of Mining Feerate Futures

In particular, suppose if you mined normally, you’d extract fees a, b from the blocks, but if you add the tx, you instead extract fees a_1, b_1 where a_1 < a and a_1 + b_1 > a+b. In that case, call hashrate mining a_1 “strategic” and say their hashrate is is 0 < h < 1, then the payoff matrix is:

probability who mines block a, b block a value block b value payoff (strategic, normal)
h^2 strategic, strategic a_1 b_1 (a_1+b_1, 0)
(1-h)h normal, strategic a b (b, a)
h(1-h) strategic, normal a_1 b_1 (a_1, b_1)
(1-h)^2 normal, normal a b (0, a+b)

Expected payoff for strategic miners is h ( a_1 + h\cdot b_1 + (1-h)b )

Expected payoff for normal miners is (1-h) ( a + h\cdot b_1 + (1-h) b )

But once you divide that by their respective hashpower, the proportional payoff for normal miners is higher, as a > a_1.