10 sats \ 3 replies \ @TheBTCManual 31 Jan \ on: Dust consolidation bitcoin
I guess that could be an option, could be an "i care for the community, ill burn some profits" signal by a miner, might be good for PR, but what would be the point of wanting to spend these?
I guess people could send a bunch of dust transactions at 1sat per vbyte and when the mempool is filled with them but where would they go? Maybe if its in conjunction with lets say a multi-sig address, lets say you sending it all to a fedimint address or pegged into liquid then it makes sense since you could still unlock that spendable value
I wonder if these dust transactions could be resolved with a convenant or if the UTXOs themselves could be sold via a statechain instead since you're not moving the UTXO but the keys and people could buy up a bunch of these to consolidate
The point is that they can't consolidate. No matter who owns the UTXO, the cost of adding it to any transaction exceeds the value it holds. Say you have a UTXO with 10 sats, and the marginal fee per UTXO is 20 sats (every UTXO you add to the transaction is adding some vbyte).
So you could transfer ownership of the UTXO, but even someone with a million 10 sat UTXOs couldn't do anything with them.
Or do you mean they are only consolidated on the sidechain? I guess that's possible. It would be known that they are essentially irredeemable, but maybe it wouldn't matter and they could be used as a kind of token on the side chain.
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I understand the first point I was just riffing on your idea of a "charity" block, it would really only make sense for miners to waste their resources moving these UTXOs if they could be moved to a second layer/sidechain otherwise you sit with the same issue again
But in the case you mentioned above, certain thresholds like 10 sats, fuckit man just burn the keys forget about it
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yeah but imagine if/when BTC gets really popular-- If you think we're "early", then it seems inevitable.
I was just making up a number, but Sat/vB has been in the hundreds and can presumably get up to tens of thousands if the demand is high enough. So imagine you have UTXOs with thousands of sats each-- they can become dust wallets. And if you think BTC could 10x from here, you're probably going to want those sats...
But yeah, it's just a daydream...
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