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- Validators still have indirect economic incentive to include transactions in block due to the deflationary effects of burning base fees, thus the sentence "Without tips, validators would find it economically viable to mine empty blocks, as they would receive the same block reward." was not technically accurate. Block rewards also outdated terminology.
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@@ -81,7 +81,7 @@ It's also important to note it is unlikely we will see extended spikes of full b
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### Priority fee (tips) {#priority-fee}
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The priority fee (tip) incentivizes validators to include a transaction in the block. Without tips, validators would find it economically viable to mine empty blocks, as they would receive the same block reward. Small tips give validators a minimal incentive to include a transaction. For transactions to be preferentially executed ahead of other transactions in the same block, a higher tip can be added to try to outbid competing transactions.
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The priority fee (tip) incentivizes validators to maximise the number of transactions in a block, constrained only by the block gas limit. Without tips, a rational validator could include fewer - or even zero - transactions without any direct execution-layer or consensus-layer penalty, as staking rewards are independent of how many transactions are in a block. Additionally, tips allow users to outbid others for priority within the same block, effectively signalling urgency.
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