Fee estimation

Fee estimation is the process of estimating the feerate a transaction will need to pay to have a high probability of being confirmed within a certain number of blocks.

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Primary code and documentation

• Bitcoin Core Fee Estimation Algorithm (2017)

Optech newsletter and website mentions

2024

• LDK #3268 adds a more conservative fee estimation method for dust calculations
• Bitcoin Core #30275 updates estimatesmartfee RPC default from conservative to economical
• LND #8730 introduces an RPC command lncli wallet estimatefee
• Discussion about weak blocks helping with feerate estimation
• Discussion of incorporating live mempool data into Bitcoin Core’s feerate estimation
• Cluster fee estimation to improve accuracy in a world with CPFP fee bumping

2023

• BTCPay Server #5490 begins using fee estimates from mempool.space
• Rust Bitcoin #2213 amends the weight prediction for P2WPKH inputs during fee estimation

2022

• ECDSA signature grinding helps with fee estimation

2021

• Bitcoin Core #22539 includes replacement transactions seen by the local node in fee estimates

2020

• Bitcoin Core #18766 disables the ability to get fee estimates when using blocks-only mode
• LND #4078 adds an estimatemode configuration setting for configuring its fee estimation

See also

• Coin selection

  
  

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