Who pays for congestion? Optimal design of protocol fees

[mtefagh]

@Face-Shaver

However, even if that were the case, users should still pay for their own congestion, and the impact of congestion on future blocks should phase out. I.e. if an oversized block is followed by a series of target-sized blocks, the fee should decrease across the target-sized blocks.

Back to my analogy with market impact theory, your suggestion is called a transient price impact. See:

Should storage be priced separately from execution?

Transient and temporary price impacts for the ephemeral costs and permanent price impacts for the permanent costs seem like a much more natural solution to me. I get the point of your numerical example but note that constants don’t affect the asymptotic behavior. This means that the effects you get from constants are totally dependent on the numerical ranges.