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Prevent gas price manipulation #509

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xgreenx opened this issue Aug 9, 2023 · 2 comments
Open

Prevent gas price manipulation #509

xgreenx opened this issue Aug 9, 2023 · 2 comments
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@xgreenx
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xgreenx commented Aug 9, 2023

If the block producer receives the whole fee from transactions included in the block, he can generate many transactions, increasing gas/storage prices and receiving spent tokens back. It allows him price manipulations for free, making the transition very expensive for the end-user.

Maybe we want to consider something like eip-1559, but instead of burning base fee tokens, we could distribute them between fuel token holders.

@xgreenx xgreenx added the question Further information is requested label Aug 9, 2023
@gww-fuel
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gww-fuel commented Aug 9, 2023

Let me rewrite it simpler, break it down a bit. So we check if I understand correctly:

Potential problem: Price manipulation, Block manipulation

Potential cause:

  • Putting transactions into block is practically free for block producer
    • because all fees they pay , come back to them in 100% from block they produced

Potential outcome:

  • manipulation of fees, inflation of fees
    • e.g. to levels very expensive for end users
    • so block producer can get back fees they paid + gains on what other users had to pay
    • incentive to inflate prices: to get more from users
    • the more block producer has, the harder can inflate during this attack
  • MEV
    • because it's practically free for block producer to put transactions, creates unmet MEV opportunities

@Voxelot
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Voxelot commented Sep 19, 2023

This concern seems more applicable in a decentralized sequencing model, as a single sequencer chain can affect prices in a multitude of more straightforward ways (i.e. adjusting the min-price parameter at the mempool level) in order to cover expenses (i.e. DA upload or node hosting costs).

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