bitcoin/doc/release-notes.md
Gavin Andresen 171ca7745e estimatefee / estimatepriority RPC methods
New RPC methods: return an estimate of the fee (or priority) a
transaction needs to be likely to confirm in a given number of
blocks.

Mike Hearn created the first version of this method for estimating fees.
It works as follows:

For transactions that took 1 to N (I picked N=25) blocks to confirm,
keep N buckets with at most 100 entries in each recording the
fees-per-kilobyte paid by those transactions.

(separate buckets are kept for transactions that confirmed because
they are high-priority)

The buckets are filled as blocks are found, and are saved/restored
in a new fee_estiamtes.dat file in the data directory.

A few variations on Mike's initial scheme:

To estimate the fee needed for a transaction to confirm in X buckets,
all of the samples in all of the buckets are used and a median of
all of the data is used to make the estimate. For example, imagine
25 buckets each containing the full 100 entries. Those 2,500 samples
are sorted, and the estimate of the fee needed to confirm in the very
next block is the 50'th-highest-fee-entry in that sorted list; the
estimate of the fee needed to confirm in the next two blocks is the
150'th-highest-fee-entry, etc.

That algorithm has the nice property that estimates of how much fee
you need to pay to get confirmed in block N will always be greater
than or equal to the estimate for block N+1. It would clearly be wrong
to say "pay 11 uBTC and you'll get confirmed in 3 blocks, but pay
12 uBTC and it will take LONGER".

A single block will not contribute more than 10 entries to any one
bucket, so a single miner and a large block cannot overwhelm
the estimates.
2014-06-06 10:44:57 -04:00

770 B

(note: this is a temporary file, to be added-to by anybody, and moved to release-notes at release time)

New RPC methods

Fee/Priority estimation

estimatefee nblocks : Returns approximate fee-per-1,000-bytes needed for a transaction to be confirmed within nblocks. Returns -1 if not enough transactions have been observed to compute a good estimate.

estimatepriority nblocks : Returns approximate priority needed for a zero-fee transaction to confirm within nblocks. Returns -1 if not enough free transactions have been observed to compute a good estimate.

Statistics used to estimate fees and priorities are saved in the data directory in the 'fee_estimates.dat' file just before program shutdown, and are read in at startup.