Author: yanmaani at cock.li 2021-04-20 01:22:34
Published on: 2021-04-20T01:22:34+00:00
Bitcoin's unconstrained UTXO set growth could be curbed by adding a block weight penalty for UTXO creation and a bonus for UTXO destruction. The net change in UTXOs within each block could be calculated to determine the weight limit, which would be reduced by the penalty. For instance, if the penalty is 10 vB/UTXO, a block with a net change of +256 would be 10 * 256 = 2560 vB smaller. This would reduce potential transaction fees by 0.00384000 BTC ($230 at current prices). Alternatively, the penalty could be in coin, requiring miners to fail to claim/burn an equivalent amount of subsidy.The weight limit (or block reward) cannot be increased, so three possible solutions have been proposed. The first option is to let any excess be wasted, allowing miners to only use consolidated UTXOs to offset new ones. The second option is to decrease the weight limit slightly by 1%, giving miners an incentive to consolidate UTXOs up to that limit. The third option involves increasing the weight limit but only if miners consolidate enough UTXOs. However, this would make it harder for low-fee transactions to get confirmed, and miners might create dust UTXOs to destroy on blocks with higher fees, freeing up capacity.This proposal raises questions on whether this has been discussed before and thoughts on the matter.
Updated on: 2023-05-21T02:18:51.970702+00:00