Author: Michael Gronager 2012-12-03 11:19:37
Published on: 2012-12-03T11:19:37+00:00
The amount of "dust" in the blockchain is increasing, with 11% of unspent transaction outputs (UTXO) being 1 satoshi (0.00000001 BTC), and 32% less than 0.0001 BTC. The majority of these small payments come from Satoshi Dice. The author proposes introducing demurrage to recycle pennies over time and mitigate this problem. Under the proposal, UTXOs age out if not re-transacted, with smaller coins aging faster. Coins older than a certain age are included in block mining rewards, creating an incentive for miners. The scheme would also prevent coins from being lost forever and impose lifetimes on colored coins.
Updated on: 2023-06-06T09:24:07.223378+00:00