> In practice, we don't know if miners would actually include cheap transactions if it makes their blocks significantly bigger. Their incentives seem to be against it, since bigger blocks have higher orphan rates.
This is incorrect in fact. The Google search term you'll need is selfish mining. It's a well studied phenomenon that for sufficiently large miner they stand to benefit from having larger blocks.
This is incorrect in fact. The Google search term you'll need is selfish mining. It's a well studied phenomenon that for sufficiently large miner they stand to benefit from having larger blocks.