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DOI: 10.4230/LIPIcs.ITCS.2026.65

Characterizing Off-Chain Influence Proof Transaction Fee Mechanisms

Authors: Aadityan Ganesh, Clayton Thomas, and S. Matthew Weinberg

Published in: LIPIcs, Volume 362, 17th Innovations in Theoretical Computer Science Conference (ITCS 2026)

Abstract

Roughgarden [Roughgarden, 2020] initiates the study of Transaction Fee Mechanisms (TFMs), and posits that the on-chain game of a "good" TFM should be on-chain simple (OnC-S), i.e., incentive compatible for both the users and the miner. Recent work of Ganesh, Thomas an Weinberg [Ganesh et al., 2024] posit that they should additionally be Off-Chain Influence-Proof (OffC-IP), which means that the miner cannot achieve any additional revenue by separately conducting an off-chain auction to determine on-chain inclusion. They observe that a cryptographic second-price auction satisfies both properties, but leave open the question of whether other mechanisms (such as those not dependent on cryptography) satisfy these properties. In this paper, we characterize OffC-IP TFMs: They are those satisfying a burn identity relating the burn rule to the allocation rule. In particular, we show that auction is OffC-IP if and only if its (induced direct-revelation) allocation rule X̄(⋅) and burn rule B̅(⋅) (both of which take as input users' values v₁, … , v_n) are truthful when viewing (X̄(⋅), B̅(⋅)) as the allocation and pricing rule of a multi-item auction for a single additive buyer with values (φ(v₁),…, φ(v_n)) equal to the users' virtual values. Building on this burn identity, we characterize OffC-IP and OnC-S TFMs that are deterministic and do not use cryptography: They are posted-price mechanisms with specially-tuned burns. As a corollary, we show that such TFMs can only exist with infinite supply and prior-dependence. However, we show that for randomized TFMs, there are additional OnC-S and OffC-IP auctions that do not use cryptography (even when there is {finite} supply, under prior-dependence with a bounded prior distribution). Holistically, our results show that while OffC-IP is a fairly stringent requirement, families of OffC-IP mechanisms can be found for a variety of settings.

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Aadityan Ganesh, Clayton Thomas, and S. Matthew Weinberg. Characterizing Off-Chain Influence Proof Transaction Fee Mechanisms. In 17th Innovations in Theoretical Computer Science Conference (ITCS 2026). Leibniz International Proceedings in Informatics (LIPIcs), Volume 362, pp. 65:1-65:23, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2026)

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@InProceedings{ganesh_et_al:LIPIcs.ITCS.2026.65,
  author =	{Ganesh, Aadityan and Thomas, Clayton and Weinberg, S. Matthew},
  title =	{{Characterizing Off-Chain Influence Proof Transaction Fee Mechanisms}},
  booktitle =	{17th Innovations in Theoretical Computer Science Conference (ITCS 2026)},
  pages =	{65:1--65:23},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-410-9},
  ISSN =	{1868-8969},
  year =	{2026},
  volume =	{362},
  editor =	{Saraf, Shubhangi},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/LIPIcs.ITCS.2026.65},
  URN =		{urn:nbn:de:0030-drops-253527},
  doi =		{10.4230/LIPIcs.ITCS.2026.65},
  annote =	{Keywords: Transaction Fee Mechanism Design, Off-Chain Influence Proofness, Blockchain, Decentralized Finance, Simple Auctions}
}

Document

DOI: 10.4230/LIPIcs.ITCS.2025.52

Combinatorial Pen Testing (Or Consumer Surplus of Deferred-Acceptance Auctions)

Authors: Aadityan Ganesh and Jason Hartline

Published in: LIPIcs, Volume 325, 16th Innovations in Theoretical Computer Science Conference (ITCS 2025)

Abstract

Pen testing is the problem of selecting high-capacity resources when the only way to measure the capacity of a resource expends its capacity. We have a set of n pens with unknown amounts of ink and our goal is to select a feasible subset of pens maximizing the total ink in them. We are allowed to learn about the ink levels by writing with them, but this uses up ink that was previously in the pens. We identify optimal and near optimal pen testing algorithms by drawing analogues to auction theoretic frameworks of deferred-acceptance auctions and virtual values. Our framework allows the conversion of any near optimal deferred-acceptance mechanism into a near optimal pen testing algorithm. Moreover, these algorithms guarantee an additional overhead of at most (1+o(1)) ln n in the approximation factor to the omniscient algorithm that has access to the ink levels in the pens. We use this framework to give pen testing algorithms for various combinatorial constraints like matroid, knapsack, and general downward-closed constraints, and also for online environments.

Cite as

Aadityan Ganesh and Jason Hartline. Combinatorial Pen Testing (Or Consumer Surplus of Deferred-Acceptance Auctions). In 16th Innovations in Theoretical Computer Science Conference (ITCS 2025). Leibniz International Proceedings in Informatics (LIPIcs), Volume 325, pp. 52:1-52:22, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2025)

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@InProceedings{ganesh_et_al:LIPIcs.ITCS.2025.52,
  author =	{Ganesh, Aadityan and Hartline, Jason},
  title =	{{Combinatorial Pen Testing (Or Consumer Surplus of Deferred-Acceptance Auctions)}},
  booktitle =	{16th Innovations in Theoretical Computer Science Conference (ITCS 2025)},
  pages =	{52:1--52:22},
  series =	{Leibniz International Proceedings in Informatics (LIPIcs)},
  ISBN =	{978-3-95977-361-4},
  ISSN =	{1868-8969},
  year =	{2025},
  volume =	{325},
  editor =	{Meka, Raghu},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/entities/document/10.4230/LIPIcs.ITCS.2025.52},
  URN =		{urn:nbn:de:0030-drops-226808},
  doi =		{10.4230/LIPIcs.ITCS.2025.52},
  annote =	{Keywords: Pen testing, consumer surplus, money-burning, deferred-acceptance auctions}
}

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Documents authored by Ganesh, Aadityan

Characterizing Off-Chain Influence Proof Transaction Fee Mechanisms

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Combinatorial Pen Testing (Or Consumer Surplus of Deferred-Acceptance Auctions)

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