Published on: 2012-12-04T09:54:38+00:00
The increasing amount of "dust" in the blockchain has sparked discussions on finding a solution. Currently, 11% of unspent transaction outputs (UTXO) are 1 satoshi and 32% are less than 0.0001 BTC. This issue is mainly caused by transactions from Satoshi Dice. However, these small payments can accumulate and potentially congest the blockchain, while the associated fees make it expensive to remove them.To address this problem, a proposal suggests implementing demurrage as a means to recycle small amounts over time. Under this system, UTXOs would age out if not re-transacted, with smaller coins aging faster. For example, coins ranging from 1-99 satoshis would live for 210 blocks, while amounts greater than 1 BTC would persist indefinitely. This approach would also affect colored coins by imposing lifetimes on them.By including aged coins in block mining rewards, this recycling scheme would provide an additional incentive for miners. Consequently, no coins would be lost permanently. However, concerns have been raised about the need to re-transact coins to protect them from vultures. This concern may lead to people frantically sending coins to themselves, inadvertently expanding the blockchain rather than reducing its growth. Others have expressed disagreement with imposing hard limits and value judgments within the protocol.In a 2012 email exchange between Michael Gronager and Pieter Wuille, they debated the possibility of changing Bitcoin's policy. Gronager argued that implementing changes without proper planning would contradict users' initial expectations. He believed that any policy change would require a hard fork, necessitating 1-2 years of planning. On the other hand, Wuille disagreed, stating that miners only have control over transaction order and do not determine validity rules. Rules preventing double spending and monetary inflation intentionally exclude miner influence.The author of the post shares concerns about changing Bitcoin's policy, as it may deviate from users' original expectations. They also recognize that implementing a change would require significant planning, potentially years in advance, and necessitate a hard fork. Additionally, the author acknowledges that the economic landscape of Bitcoin may undergo substantial changes during this time.However, the author supports adjusting the mining policy to prioritize transactions that reduce the number of UTXOs. They propose modifying the relay fee so that transactions increasing the number of UTXOs incur an additional cost, while those reducing it pay less. This approach could combat dust spam and control UTXO growth. The author argues against penalizing clients for eliminating dust and suggests automatic rewriting of client software to facilitate this process.In summary, the amount of dust in the blockchain is increasing, with a significant portion of UTXOs consisting of small amounts. Demurrage has been proposed as a solution to recycle these small amounts over time. While there are concerns about changing Bitcoin's policy and the need for a hard fork, adjusting the mining policy to prioritize reducing the number of UTXOs is seen as a favorable solution.
Updated on: 2023-08-01T04:20:24.993475+00:00