> Drivechains is designed to give miners more revenue.
I’ve heard Sztorc make this claim. But the mechanism is unclear to me.
As I understand it, miner revenue can come from three possible sources: block subsidy, fees, and direct payments.
The block subsidy schedule is immutable, ruling that out. So does this alleged increase in miner income arise from increased on-chain fees? Or via direct payments?
Merge mining fee revenue
so, fees
Do you mean sidechain fees (via merged mining) or mainchain fees or both?
side chains fees are aggregated and paid to mainchain miners as mainchain bitcoin in a single merge mining transaction
Makes sense. It sounds like the merge mining revenue comes out of the escrowed funds then.
The degree to which this constitutes “additional” revenue would be a function of how it compares to the mainchain revenue lost in reduced fee pressure, I would imagine.
Very good point. Of course there's some things, like zero knowledge proofs, that are not possible on the mainchain and so any fees earned for those use cases are strictly a win for miners.
