3 Search Results for "Monnot, Barnabé"

Document
DOI: 10.4230/LIPIcs.AFT.2023.4
Designing Multidimensional Blockchain Fee Markets

Authors: Theo Diamandis, Alex Evans, Tarun Chitra, and Guillermo Angeris

Published in: LIPIcs, Volume 282, 5th Conference on Advances in Financial Technologies (AFT 2023)

Abstract
Public blockchains implement a fee mechanism to allocate scarce computational resources across competing transactions. Most existing fee market designs utilize a joint, fungible unit of account (e.g., gas in Ethereum) to price otherwise non-fungible resources such as bandwidth, computation, and storage, by hardcoding their relative prices. Fixing the relative price of each resource in this way inhibits granular price discovery, limiting scalability and opening up the possibility of denial-of-service attacks. As a result, many prominent networks such as Ethereum and Solana have proposed multidimensional fee markets. In this paper, we provide a principled way to design fee markets that efficiently price multiple non-fungible resources. Starting from a loss function specified by the network designer, we show how to dynamically compute prices that align the network’s incentives (to minimize the loss) with those of the users and miners (to maximize their welfare), even as demand for these resources changes. We derive an EIP-1559-like mechanism from first principles as an example. Our pricing mechanism follows from a natural decomposition of the network designer’s problem into two parts that are related to each other via the resource prices. These results can be used to efficiently set fees in order to improve network performance.
Cite as

Theo Diamandis, Alex Evans, Tarun Chitra, and Guillermo Angeris. Designing Multidimensional Blockchain Fee Markets. In 5th Conference on Advances in Financial Technologies (AFT 2023). Leibniz International Proceedings in Informatics (LIPIcs), Volume 282, pp. 4:1-4:23, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2023)

Copy BibTex To Clipboard

@InProceedings{diamandis_et_al:LIPIcs.AFT.2023.4,
  author =	{Diamandis, Theo and Evans, Alex and Chitra, Tarun and Angeris, Guillermo},
  title =	{{Designing Multidimensional Blockchain Fee Markets}},
  booktitle =	{5th Conference on Advances in Financial Technologies (AFT 2023)},
  pages =	{4:1--4:23},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-303-4},
  ISSN =	{1868-8969},
  year =	{2023},
  volume =	{282},
  editor =	{Bonneau, Joseph and Weinberg, S. Matthew},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops-dev.dagstuhl.de/entities/document/10.4230/LIPIcs.AFT.2023.4},
  URN =		{urn:nbn:de:0030-drops-191933},
  doi =		{10.4230/LIPIcs.AFT.2023.4},
  annote =	{Keywords: Blockchains, transaction fees, convex optimization, mechanism design}
}
Document
DOI: 10.4230/LIPIcs.AFT.2023.30
Time Is Money: Strategic Timing Games in Proof-Of-Stake Protocols

Authors: Caspar Schwarz-Schilling, Fahad Saleh, Thomas Thiery, Jennifer Pan, Nihar Shah, and Barnabé Monnot

Published in: LIPIcs, Volume 282, 5th Conference on Advances in Financial Technologies (AFT 2023)

Abstract
We propose a model suggesting that rational consensus participants may play timing games, and strategically delay their block proposal to optimize MEV capture, while still ensuring the proposal’s inclusion in the canonical chain. In this context, ensuring economic fairness among consensus participants is critical to preserving decentralization. We contend that a model grounded in rational consensus participation provides a more accurate portrayal of behavior in economically incentivized systems such as blockchain protocols. We empirically investigate timing games on the Ethereum network and demonstrate that while timing games are worth playing, they are not currently being exploited by consensus participants. By quantifying the marginal value of time, we uncover strong evidence pointing towards their future potential, despite the limited exploitation of MEV capture observed at present.
Cite as

Caspar Schwarz-Schilling, Fahad Saleh, Thomas Thiery, Jennifer Pan, Nihar Shah, and Barnabé Monnot. Time Is Money: Strategic Timing Games in Proof-Of-Stake Protocols. In 5th Conference on Advances in Financial Technologies (AFT 2023). Leibniz International Proceedings in Informatics (LIPIcs), Volume 282, pp. 30:1-30:17, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2023)

Copy BibTex To Clipboard

@InProceedings{schwarzschilling_et_al:LIPIcs.AFT.2023.30,
  author =	{Schwarz-Schilling, Caspar and Saleh, Fahad and Thiery, Thomas and Pan, Jennifer and Shah, Nihar and Monnot, Barnab\'{e}},
  title =	{{Time Is Money: Strategic Timing Games in Proof-Of-Stake Protocols}},
  booktitle =	{5th Conference on Advances in Financial Technologies (AFT 2023)},
  pages =	{30:1--30:17},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-303-4},
  ISSN =	{1868-8969},
  year =	{2023},
  volume =	{282},
  editor =	{Bonneau, Joseph and Weinberg, S. Matthew},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops-dev.dagstuhl.de/entities/document/10.4230/LIPIcs.AFT.2023.30},
  URN =		{urn:nbn:de:0030-drops-192193},
  doi =		{10.4230/LIPIcs.AFT.2023.30},
  annote =	{Keywords: blockchain, proof-of-stake, game theory, maximal extractable value}
}
Document
DOI: 10.4230/LIPIcs.STACS.2019.31
Wealth Inequality and the Price of Anarchy

Authors: Kurtuluş Gemici, Elias Koutsoupias, Barnabé Monnot, Christos H. Papadimitriou, and Georgios Piliouras

Published in: LIPIcs, Volume 126, 36th International Symposium on Theoretical Aspects of Computer Science (STACS 2019)

Abstract
The price of anarchy quantifies the degradation of social welfare in games due to the lack of a centralized authority that can enforce the optimal outcome. It is known that, in certain games, such effects can be ameliorated via tolls or taxes. This leads to a natural, but largely unexplored, question: what is the effect of such transfers on social inequality? We study this question in nonatomic congestion games, arguably one of the most thoroughly studied settings from the perspective of the price of anarchy. We introduce a new model that incorporates the income distribution of the population and captures the income elasticity of travel time (i.e., how does loss of time translate to lost income). This allows us to argue about the equality of wealth distribution both before and after employing a mechanism. We establish that, under reasonable assumptions, tolls always increase inequality in symmetric congestion games under any reasonable metric of inequality such as the Gini index. We introduce the inequity index, a novel measure for quantifying the magnitude of these forces towards a more unbalanced wealth distribution and show it has good normative properties (robustness to scaling of income, no-regret learning). We analyze inequity both in theoretical settings (Pigou’s network under various wealth distributions) as well as experimental ones (based on a large scale field experiment in Singapore). Finally, we provide an algorithm for computing optimal tolls for any point of the trade-off of relative importance of efficiency and equality. We conclude with a discussion of our findings in the context of theories of justice as developed in contemporary social sciences and present several directions for future research.
Cite as

Kurtuluş Gemici, Elias Koutsoupias, Barnabé Monnot, Christos H. Papadimitriou, and Georgios Piliouras. Wealth Inequality and the Price of Anarchy. In 36th International Symposium on Theoretical Aspects of Computer Science (STACS 2019). Leibniz International Proceedings in Informatics (LIPIcs), Volume 126, pp. 31:1-31:16, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2019)

Copy BibTex To Clipboard

@InProceedings{gemici_et_al:LIPIcs.STACS.2019.31,
  author =	{Gemici, Kurtulu\c{s} and Koutsoupias, Elias and Monnot, Barnab\'{e} and Papadimitriou, Christos H. and Piliouras, Georgios},
  title =	{{Wealth Inequality and the Price of Anarchy}},
  booktitle =	{36th International Symposium on Theoretical Aspects of Computer Science (STACS 2019)},
  pages =	{31:1--31:16},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-100-9},
  ISSN =	{1868-8969},
  year =	{2019},
  volume =	{126},
  editor =	{Niedermeier, Rolf and Paul, Christophe},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops-dev.dagstuhl.de/entities/document/10.4230/LIPIcs.STACS.2019.31},
  URN =		{urn:nbn:de:0030-drops-102707},
  doi =		{10.4230/LIPIcs.STACS.2019.31},
  annote =	{Keywords: congestion games, inequality}
}
  • Refine by Author
  • 2 Monnot, Barnabé
  • 1 Angeris, Guillermo
  • 1 Chitra, Tarun
  • 1 Diamandis, Theo
  • 1 Evans, Alex
  • Show More...

  • Refine by Classification
  • 1 Information systems → Digital cash
  • 1 Theory of computation → Algorithmic game theory
  • 1 Theory of computation → Algorithmic game theory and mechanism design
  • 1 Theory of computation → Algorithmic mechanism design
  • 1 Theory of computation → Convex optimization

  • Refine by Keyword
  • 1 Blockchains
  • 1 blockchain
  • 1 congestion games
  • 1 convex optimization
  • 1 game theory
  • Show More...

  • Refine by Type
  • 3 document

  • Refine by Publication Year
  • 2 2023
  • 1 2019

Questions / Remarks / Feedback
X

Feedback for Dagstuhl Publishing


Thanks for your feedback!

Feedback submitted

Could not send message

Please try again later or send an E-mail
© 2023-2024 Schloss Dagstuhl – LZI GmbH Imprint Privacy Contact