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/ETHconomics

Optimal Dynamic Fees for Blockchain Resources

Wed, Nov 15, 2023, 11:25 AM · 24:20

The talk will present the problem of optimal fee market design. We will start with a broad introduction, then discuss a practical framework to derive optimal dynamic fees with multiple resources. I will present theoretical and empirical results derived using this framework and practical case studies of EIP-1559-style policies and multidimensional extensions such as EIP-4844.

Davide is a Research Scientist at the Robust Incentives Group within the Ethereum Foundation. Before this, he obtained his Ph.D. from Columbia Business School and spent time at Lyft as a researcher. His current focus is on transaction fee mechanisms, L2 economics and MEV.