A suggestion to periodically destroy (or remove to secondary storage for Archiving reasons) dust, Non-standard UTXOs, and also detected burn

Summary:

The thread on Bitcointalk poses the question of how to handle the extensive amount of dust created by Alt coins and new protocols. The suggestion is to divide 1 Satoshi into fractions or accept a UTXO with 0 value, which could be considered non-standard transactions. The email from 2016 regarding non-standard transactions is referenced. On the Bitcoin-dev mailing list, there is discussion around addressing the issue of UTXO set size. One proposed solution is to use economic incentives to disincentivize the creation of new UTXOs, by charging a fee based on bytes and byte weight plus net_utxos and utxo weight. This would result in a lower block size cap via a soft fork, and could also include a limit at 0 to avoid guaranteed returns.

Updated on: 2023-06-15T16:23:48.653329+00:00