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Say after receiving and spending a bunch of various sat instruments you want to consolidate on chain. Will these amounts be pulled from their origin UTXO into a new TX?
The example given in the whitepaper of 100 instruments at 5 sats/vb was less than a dollar. Surely if you're pulling sats out of a bunch of UTXO's the fees should be a lot higher.
You don't have do the math yourself - the wallet picks it for you from the most efficient combo. The merchant can keep a bunch ready for change and if not they automatically create the correct amount to send back on demand. The instruments are bound to the range in absolutes so you don't get any small change.
If this concept ends up being too antiquated for the beta tests to validate then we can always switch back to creation on demand where it'll be able to do much smaller accurate atomic amounts.