All About That Gas

Building on his overview of how to design incentive structures when the network of validators incurs a social cost, Abdou Ndiaye (NYU) examines relative pricing of blockchain resources and highlights the role of various elasticities. Abdou discusses needed adjustments to Ethereum’s EIP-1559 transaction fee mechanism. He also presents new ideas on the economics of storage on blockchains, and execution mechanisms to limit congestion.

For background, see Abdou’s first presentation from summer ’22.

About the speaker

Abdou is an Assistant Professor of Economics at New York University, Leonard N. Stern School of Business, and a Research Affiliate at the Centre for Economic Policy Research. His research focuses on the impact of incentives in macroeconomic environments. He investigates issues related to public finance and the emerging areas of blockchains and decentralized finance.

About a16z crypto research

a16z crypto research is a multidisciplinary lab that works closely with our portfolio companies and others toward solving the important problems in the space, and toward advancing the science and technology of the next generation of the internet.