AntPool to Reimburse Record $3M in BTC Transaction Fees

• AntPool to Refund $3 Million Transaction Fee Following Likely User Error
• Unusual Transaction Fee Sparks Action
• Understanding the Role of Miners
• Verification and Refund Protocol
• The Breakdown of the Erroneous Transaction

AntPool to Refund $3 Million Transaction Fee Following Likely User Error

In an unprecedented move, Bitcoin$42,260 -0.64% mining entity AntPool has committed to refunding a $3 million transactional fee it processed due to a probable user error, resulting in the highest-ever fee paid for a Bitcoin network transfer.

Unusual Transaction Fee Sparks Action

On November 23rd, an unusually large sum of 83 BTC was submitted as a transaction fee by some users, prompting AntPool's action. The risk control system of ANTPOOL momentarily halted the fee during the transaction's packaging process, according to a statement released by the company.

Understanding the Role of Miners

Miners play a crucial role in blockchain networks like Bitcoin. They employ vast computing resources to process transactions. Each successful mining of a block rewards miners with a predetermined amount. Although not required to refund fees, miners may elect to do so in instances where the fees submitted are notably substantial.

Verification and Refund Protocol

In effort to ensure proper refund, AntPool stated it would authenticate the sender's identity if they sign an on-chain message through a separate bitcoin transaction using the same message. This step is crucial in establishing proof of ownership.

The Breakdown of the Erroneous Transaction

AntPool received a standard fee of 6.25 Bitcoin (BTC) in addition to an extraordinary fee of 85.2163 BTC for all transactions linked to this mishap, as revealed by on-chain data. The sender's wallet was established mere minutes before executing the transfer, resulting in the recipient receiving only 55.78 BTC out of the initial 139.42 BTC that was sent.

Edited by Jonathan Stoker