What Is the Primary Incentive for a Miner to Prioritize High-Fee Transactions?
The primary incentive is economic self-interest and profit maximization. Transaction fees are an additional reward on top of the block subsidy (newly minted coins).
By including transactions that offer the highest fees per unit of block space, miners maximize the total reward they receive for successfully mining a block. This competitive behavior drives the fee market and ensures network security.
Glossar
Block Subsidy
Genesis ⎊ Block subsidy, within cryptocurrency networks, represents the initial allocation of newly minted coins to miners or validators as a reward for processing transactions and securing the blockchain.
Incentive
Mechanism ⎊ Incentive structures within cryptocurrency, options trading, and financial derivatives function as engineered protocols to align the interests of diverse participants, influencing behavior and mitigating agency problems.
Transaction Fees
Cost ⎊ Transaction fees represent a quantifiable expense incurred for processing and validating transactions across diverse financial systems, functioning as a critical component of network participation and security.