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63 sats \ 2 replies \ @anon 8 May \ on: Wasabi Wallet v2.6.0 released w/ SLIP39 multi share support bitcoin
What's the rule of thumb regarding consolidating Utxo s after coinjoin? Seeing limited and guesswork-sounding info out there.
If someone coinjoins a single utxo of 1 BTC they may end up with big chunks but also smaller bits of 10k, 20k sats.
Does reconsolidation of a few, or all, the private utxo completely defeat the privacy gains of coinjoining?
Secondly, the option to coinjoin disappears after 100% private is reached on Wasabi. Does that mean rejoining from that point is useless?
As a general rule, each additional UTXO you consolidate will decrease your privacy by some marginal amount. It's hard to give precise guidance since the observation model is different for whales vs small users and different for coordinators with large liquidity vs small liquidity.
If you start with only a single UTXO, there's a special case that triggers called Safety Coinjoins that will perform an extra remix for all of the outputs created in the initial round.
You can go to the wallet settings button from the ". . ." menu in the top right and check the coinjoin tab. Here you can increase the "Anonymity Score Target" number if you want to reduce your privacy progress below 100% again to participate in more transactions.
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I strongly recommend using Wasabi as a privacy-oriented wallet and not as a mixer.
This means that you should welcome both large chunks and smaller amounts (10k, 20k sats) because this increases your capacity to make payments privately and avoid change.
Having a variety of denominations makes it much easier to find combinations of coins for payments you need to make. Even if Wasabi can't avoid creating change for your transaction, only a tiny portion of your wallet will be known by someone else, and the labeling system (in my opinion, the most powerful tool in Wasabi) will help you avoid leaking more information to others.
Having very few coins, or in the extreme case only one coin, is a privacy nightmare. This means that whatever payment you need to make will involve a large portion of your wallet, which also means you cannot avoid change, and then your future payments will be trackable. For example, a wallet with only one coin generates a peel chain that is trivial to follow.
There are situations where consolidating can make sense, such as when coins are too small and you fear they could become unspendable or too costly to spend, but in general, it is not the best approach for privacy.
The "Wasabi is a mixer" mentality consists on sending to Wasabi, participate in many coinjoins and then consolidate everything to send it to a non-privacy-focused wallet. Do not do that.
Okay okay, if you want/need to do it then there are a couple of ways to do it to mitigate a bit these problems:
- Coinjoin to another wallet: Wasabi can send your coins in a coinjoin to another wallet. In this case it tries to use as much coins as possible (never more than ten) and send that amount to a different wallet in a set of outputs. It doesn't do a big consolidation but it at least doesn't generate much outputs
- Pay in coinjoin: It requires a few command lines but it is a super powerful tool that allows you to send money in a coinjoin where you are the one who specify the amount of the output. Here you can see a donation to El Salvador bitcoin address in a Wasabi coinjoin: https://mempool.space/tx/8c58beccc25acc763c528515b3a23bb92eeb6dc41b519ef681f76dfcc76cc19d#vout=433
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