Block weight penalty for UTXO set growth



Summary:

UTXO consolidation incentivizes already exist, according to a message from Prayank to Yanmaani. When fee rates are low, consolidating can save money and help decrease the size of the UTXO set for those running a full node on Bitcoin. However, there are privacy concerns with post coinjoin. Prayank was unsure about some of Yanmaani's proposal, including the part about fees decreasing due to smaller blocks, as they believe that fees should increase if such blocks are regularly mined and predictable.


Updated on: 2023-06-14T20:19:56.656048+00:00