In order to be able to transfer the key and provide the backup, currently the whole UTXO must be transferred. 

You could split a utxo into a backup with more than one output, but then if each one gets transferred separately, you have to start creating a chain of backup transactions that would get bigger and bigger. 

tptrevethan

What about sending a single large UTXO to multiple Mercury statechain addresses, broken down into denominations, e.g.:

1.2M sat UTXO (or whatever > 1.2 M if also including a change address) sent to multiple addresses with the following amounts (in sats)

 10,000
 20,000
 40,000
 80,000
160,000
320,000
640,000
-------
1.27M sat total

 Then you have multiple denominations on the statechain to spend in a more retail-like setting that together can add up to any desired amount (within the nearest 

). If enough people have done this, we don't need small UTXOs that exist 1:1 with small UTXOs on main chain.

Question: does the protocol allow for initial injection of a single UTXO on main chain into multiple statecoins?

bitcoin

Mercury layer AMA

What about sending a single large UTXO to multiple Mercury statechain addresses, broken down into denominations, e.g.:

1.2M sat UTXO (or whatever > 1.2 M if also including a change address) sent to multiple addresses with the following amounts (in sats)
```
 10,000
 20,000
 40,000
 80,000
160,000
320,000
640,000
-------
1.27M sat total
```

Or some other combination totaling <whatever> Then you have multiple denominations on the statechain to spend in a more retail-like setting that together can add up to any desired amount (within the nearest <smallest denomination>). If enough people have done this, we don't need small UTXOs that exist 1:1 with small UTXOs on main chain.


Question: does the protocol allow for initial injection of a single UTXO on main chain into multiple statecoins?