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Anders Elowsson
@anderselowsson
Check out EIP-7918: Blob base fee bounded by execution cost. PFI in Fusaka. A simple if-else ensures the price for target blobs > the tx price to carry them. The blob auction can then reach equilibrium relative to the price signal. https://ethereum-magicians.org/t/eip-7918-blob-base-fee-bounded-by-execution-cost/23271
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Anders Elowsson
@anderselowsson
Observe how execution costs make the demand curve inelastic. A small shift in demand or costs (arrows) can therefore lead to dramatic shifts in the equilibrium blob base fee, bringing it down to 1 wei. The auction cannot function, because supply and demand curves are parallel.
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Anders Elowsson
@anderselowsson
When demand picks up, the auction mechanism is stuck at too-low fees, intermittently resorting to a first-price auction, considered a worse UX by blob consumers. The resulting spikiness in resource consumption is suboptimal for scaling blobspace.
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Anders Elowsson
@anderselowsson
To alleviate this, the proposal imposes that the equilibrium (squares) forms on the edges of the upper-left quadrant, at the intersection between supply and demand or between fee parity of blobs/tx and demand. The auction mechanism can then function properly.
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Anders Elowsson
@anderselowsson
I think the ACDE today will be a bit busy with other topics, so I will not pitch it there. But if you are a developer thinking that this simple change might be worthwhile for a scaling-focused fork, feel free to reach out! I can answer any questions you may have over the weekend.
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Anders Elowsson
@anderselowsson
https://github.com/ethereum/EIPs/blob/master/EIPS/eip-7918.md
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