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add rationale for the 60/40 fee split in ZIP-235 #4

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add rationale for the 60/40 fee split in ZIP-235 #4

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cef4d61
add rationale for the 60/40 fee split in ZIP-235
aphelionz Apr 6, 2026
c83f2ea
fix: move footnote
aphelionz Apr 9, 2026
e739f15
Update zips/zip-0235.md
aphelionz Apr 9, 2026
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21 changes: 21 additions & 0 deletions zips/zip-0235.md
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Expand Up @@ -142,6 +142,25 @@ a year.
If 60% of these fees are removed from circulation, that would be 210.864 ZEC per
year. [^zsf-fee-estimator]

## Rationale for the 60/40 split

An asymmetric fee split favoring the removal mechanism is preferred for two
reasons. [^nsm-incentives]

1. An equal split, or a split that favors miners, creates a long-term security
concern. As issuance approaches zero, the proportion of fee revenue that a
miner can recoup through future block subsidies depends on their share of
network hash rate. Miners would face an incentive to roll back a preceding
block whenever the fee difference between adjacent blocks exceeds their
mining costs plus current issuance. By directing a larger share (60%) to the
removal mechanism and a smaller share (40%) to miners, the block-to-block
fee variation visible to miners is reduced, narrowing the window in which
rollback attacks are profitable.
2. An asymmetric split aids implementation correctness. Equal fractions
make it impossible to detect certain classes of bugs, such as swapping
the miner and removal fractions, or swapping the consensus checks on those
amounts. Any split other than 50/50 makes such errors observable in testing.

## Considerations for the Future

If transaction fees were to increase, further modifications can easily be
Expand Down Expand Up @@ -192,4 +211,6 @@ ZIP 233 ("NSM: Removing Funds From Circulation" [^zip-0233]).

[^zsf-fee-estimator]: [GitHub repository eigerco/zsf-fee-estimator](https://github.com/eigerco/zsf-fee-estimator)

[^nsm-incentives]: [Zcash Community Forum — Network Sustainability Mechanism (NSM), post by teor](https://forum.zcashcommunity.com/t/network-sustainability-mechanism-nsm/42703/104)

[^eip-1559]: [EIP-1559: Fee market change for ETH 1.0 chain](https://eips.ethereum.org/EIPS/eip-1559)
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