From mboxrd@z Thu Jan 1 00:00:00 1970 Delivery-date: Sat, 08 Mar 2025 10:41:19 -0800 Received: from mail-yb1-f183.google.com ([209.85.219.183]) by mail.fairlystable.org with esmtps (TLS1.3) tls TLS_ECDHE_RSA_WITH_AES_128_GCM_SHA256 (Exim 4.94.2) (envelope-from ) id 1tqz6s-0005fQ-JQ for bitcoindev@gnusha.org; Sat, 08 Mar 2025 10:41:19 -0800 Received: by mail-yb1-f183.google.com with SMTP id 3f1490d57ef6-e572cd106f7sf4367900276.3 for ; Sat, 08 Mar 2025 10:41:18 -0800 (PST) DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; d=googlegroups.com; s=20230601; t=1741459272; x=1742064072; darn=gnusha.org; h=list-unsubscribe:list-subscribe:list-archive:list-help:list-post :list-id:mailing-list:precedence:x-original-sender:mime-version :subject:message-id:to:from:date:sender:from:to:cc:subject:date :message-id:reply-to; bh=zmmW7asiBOxgG3HtlVqqlt9Sond81A/hUFsjCkP0WRk=; b=EzeWXOjOBONjJOUvXDisA0nckrAFC+Vlzp527QXtYP1CUDs6Qotpwr3e/f1EUUW0tK 7vhs+BdNkhgb+rkABELBu6AciLiqoBgMdXvW/t/trC0pjw279+Ad+WG5822SQhuED6hM HdMtfO458s/0SUd6mxNQoyq30AV+usK6I4emZOiF7Wkv6qkraApZUyGRdL0vrvdVSazI 4VpDpXYY98buQiWbQryvfxyQbabZ2EEl145JGfWwNcWK/m/xG9wfpE7Lx+g50Kf1ZWU/ grzGftWJxrghHpRSYJ5c9N1l+fNKEpf/uxRsSrLxB5tSF8gtZ0dZQ0zclkuWs5ageZ2d SgmQ== DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; d=gmail.com; s=20230601; t=1741459272; x=1742064072; darn=gnusha.org; h=list-unsubscribe:list-subscribe:list-archive:list-help:list-post :list-id:mailing-list:precedence:x-original-sender:mime-version :subject:message-id:to:from:date:from:to:cc:subject:date:message-id :reply-to; bh=zmmW7asiBOxgG3HtlVqqlt9Sond81A/hUFsjCkP0WRk=; b=f5Q+0YelsmkCEUgVei74MD61GZ7hoZuCpg9fXzJKl6YQqeV/SJbX+7M31Z/A3Yj33d V8AvQrY3OwNN31AhlTNYVuUkbWSwu+EEzX6DUaulLKrJ2OypNQ2CTNJCCpUalms3+8z2 z17Z70SpuGfe6NnCNOG12qWeyz2QJZTMAwr9mUfkfklaNaDynYGx0FcdeQFAPCkAA2Rr 8sVOTjaN/wCcGyg+sQiyl2+5yuVOwK+/mDz9q/JR6XT0ZkBp2H6Tt7pyN2dvI90h/2yo UWl/BbBqYKk39MEdCY6fjGT7fO+6CnCBDQCjsH9q4ptIaiTop9DS8a9+dCaEc8JzlVMx spPw== X-Google-DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; d=1e100.net; s=20230601; t=1741459272; x=1742064072; h=list-unsubscribe:list-subscribe:list-archive:list-help:list-post :list-id:mailing-list:precedence:x-original-sender:mime-version :subject:message-id:to:from:date:x-beenthere:x-gm-message-state :sender:from:to:cc:subject:date:message-id:reply-to; bh=zmmW7asiBOxgG3HtlVqqlt9Sond81A/hUFsjCkP0WRk=; b=sOx20RAA6FYrU6fQr1hBhkP6Qh88ffGKeADA9HFo30zWMQG1y74h/H2nuJfYZiPe41 r9xe2pn/6K+2/FNApxszCHK/1/NYwZVsOHPcgfbSTCGKaUsnZUaZYX6Z/y0P2HfCyMw8 TE8izCX+x7dR5GLoBXFcnnxZFlFRmyMVkaIhqdIYGqgDuJTaAoEmvMwbkFNxkxWnk6YT uCZ5z9TVuS5LPjSzAv0FKeUXA4WcZD8vrYeCQDtBOVmwiYIQ9oKn3DZbRVxSd1R3TH/N cjaUucSL2Bgfa/owLMTBeL873BC9qIH0iMYTsKCldJHyhkVnGFLUcqTZgySJs3RDHLyy K0Yw== Sender: bitcoindev@googlegroups.com X-Forwarded-Encrypted: i=1; AJvYcCW36F7kAFMH0l/Sq2st3oVgjLywfcApkpYoOmRFgjUWRI/x2Ni0zNtK2AatntA/AC6T9bNglTpKfLYl@gnusha.org X-Gm-Message-State: AOJu0Yw42YAilOC1hSE6tMw+S/DIRgCJnov6Evl1dXl2nvXXWfrAI6JD 7fqitgwMcYcNxYNW/1Jzu5bb5S/Zb2CK9MPpBxskh1ehoyyIzhHD X-Google-Smtp-Source: AGHT+IFiviMD7opY8tRh+NXyTZd8gXvjU4rHyWvFHWF5NZNrXhi49f8UGoPt8vpKdqjMtT4yVO2sQw== X-Received: by 2002:a05:6902:18d1:b0:e60:9cf8:7f36 with SMTP id 3f1490d57ef6-e635c100a4cmr11486880276.2.1741459272298; Sat, 08 Mar 2025 10:41:12 -0800 (PST) X-BeenThere: bitcoindev@googlegroups.com; h=Adn5yVHkgkugCOFwDVnF0ro+MXhuNqoswFOt+d4VW5epVxP9eA== Received: by 2002:a25:264b:0:b0:e5b:3877:6d59 with SMTP id 3f1490d57ef6-e6347ead2cals103043276.0.-pod-prod-05-us; Sat, 08 Mar 2025 10:41:08 -0800 (PST) X-Received: by 2002:a05:690c:7207:b0:6fd:47c1:fce4 with SMTP id 00721157ae682-6febf329b15mr105310827b3.22.1741459268021; Sat, 08 Mar 2025 10:41:08 -0800 (PST) Received: by 2002:a05:690c:3388:b0:6ef:590d:3213 with SMTP id 00721157ae682-6fda287d366ms7b3; Sat, 8 Mar 2025 10:23:29 -0800 (PST) X-Received: by 2002:a05:690c:7207:b0:6fd:47c1:fce4 with SMTP id 00721157ae682-6febf329b15mr104736597b3.22.1741458208581; Sat, 08 Mar 2025 10:23:28 -0800 (PST) Date: Sat, 8 Mar 2025 10:23:28 -0800 (PST) From: Nighttime Satoshi To: Bitcoin Development Mailing List Message-Id: <62b454f8-56be-4eae-ba3e-57c53d493f3dn@googlegroups.com> Subject: [bitcoindev] Proposal: Unlocking Dust UTXOs as Miner Transaction Fees MIME-Version: 1.0 Content-Type: multipart/mixed; boundary="----=_Part_109826_706320560.1741458208270" X-Original-Sender: nighttimesatoshi@gmail.com Precedence: list Mailing-list: list bitcoindev@googlegroups.com; contact bitcoindev+owners@googlegroups.com List-ID: X-Google-Group-Id: 786775582512 List-Post: , List-Help: , List-Archive: , List-Unsubscribe: , X-Spam-Score: 0.8 (/) ------=_Part_109826_706320560.1741458208270 Content-Type: multipart/alternative; boundary="----=_Part_109827_943495608.1741458208270" ------=_Part_109827_943495608.1741458208270 Content-Type: text/plain; charset="UTF-8" Dear fellow Bitcoin developers, I'm excited to share a proposal addressing a long-standing Bitcoin challenge: economically unviable dust UTXOs. As Bitcoin's value and transaction fees increase, more UTXOs become effectively unspendable because the cost to move them exceeds their value. This creates a growing dust horizon - small amounts of BTC permanently stranded from circulation, weakening fungibility and bloating the UTXO set. I'm proposing a solution that enables users to voluntarily designate their dust UTXOs as transaction fees through cryptographic authorization, allowing miners to claim them directly without requiring traditional spending. This is a win-win-win solution for users (reclaiming otherwise stranded value), miners (additional fee income), and the network (reduced UTXO set size). Key Features: 1. *Entirely Voluntary* - Users must explicitly authorize any dust UTXO transfer with cryptographic signatures proving ownership 2. *Implementation as Soft Fork* - Backward-compatible with non-upgraded nodes 3. *Simple Security Model* - Uses familiar signature verification without exposing private keys 4. *Clearly Defined Dust Threshold* - Fixed at 546 satoshis, matching Bitcoin Core's existing dust limit 5. *Race Condition Prevention* - Comprehensive safeguards against double-spend and miner race conditions 6. *Minimal Consensus Impact* - Carefully designed to introduce minimal complexity to Bitcoin's validation logic Economic Benefits: 1. *UTXO Set Cleanup* - Removing millions of dust UTXOs could significantly reduce the UTXO set size 2. *Enhanced Fungibility* - Provides a pathway for stranded satoshis to rejoin economic circulation 3. *Long-term Miner Incentive* - Creates an additional fee source as block rewards diminish 4. *Complementary to Existing Solutions* - Works alongside batching, consolidation, and Lightning Network Technical Implementation: The proposal uses a special OP_RETURN output format in transactions to designate dust UTXOs for miner claiming: OP_RETURN Miners can claim these UTXOs in their coinbase transaction if and only if the corresponding designation transaction is included in the same block. Historical Context & Contributions: It seems that previous discussions on dust UTXOs have considered many approaches, including forced reclamation. This proposal avoids those controversies by requiring explicit user authorization while still providing an economically rational path for dust cleanup. You can read the full proposal draft here: https://github.com/satoshinotebook/BIPs/blob/main/unlocking-dust-utxos-as-transaction-fees.md I'd appreciate feedback on: 1. Technical feasibility of the soft fork implementation 2. Security considerations and potential edge cases 3. Economic incentive alignment 4. User experience concerns for wallet implementations Thank you for any feedback! I believe it offers a practical solution to a growing challenge that will only become more significant as Bitcoin continues to mature and evolve. With respect, Nighttime Satoshi nighttimesatoshi@gmail.com https://satoshinotebook.com -- You received this message because you are subscribed to the Google Groups "Bitcoin Development Mailing List" group. To unsubscribe from this group and stop receiving emails from it, send an email to bitcoindev+unsubscribe@googlegroups.com. To view this discussion visit https://groups.google.com/d/msgid/bitcoindev/62b454f8-56be-4eae-ba3e-57c53d493f3dn%40googlegroups.com. ------=_Part_109827_943495608.1741458208270 Content-Type: text/html; charset="UTF-8" Content-Transfer-Encoding: quoted-printable Dear fellow Bitcoin developers,

I'm excited to share a proposal addre= ssing a long-standing Bitcoin challenge: economically unviable dust UTXOs.<= /span>

As = Bitcoin's value and transaction fees increase, more UTXOs become effectivel= y unspendable because the cost to move them exceeds their value. This creat= es a growing dust horizon - small amounts of BTC permanently stranded from = circulation, weakening fungibility and bloating the UTXO set.

I'm proposing a soluti= on that enables users to voluntarily designate their dust UTXOs as transact= ion fees through cryptographic authorization, allowing miners to claim them= directly without requiring traditional spending. This is a win-win-win sol= ution for users (reclaiming otherwise stranded value), miners (additional f= ee income), and the network (reduced UTXO set size).

Key Features:
  1. Entirely V= oluntary=C2=A0- Users must explicitly authorize any dust UTXO tran= sfer with cryptographic signatures proving ownership
  2. Implem= entation as Soft Fork=C2=A0- Backward-compatible with non-upgraded= nodes
  3. Simple Security Model=C2=A0- Uses familiar = signature verification without exposing private keys
  4. Clearl= y Defined Dust Threshold=C2=A0- Fixed at 546 satoshis, matching Bi= tcoin Core's existing dust limit
  5. Race Condition Prevention<= /strong>=C2=A0- Comprehensive safeguards against double-spend and miner rac= e conditions
  6. Minimal Consensus Impact=C2=A0- Caref= ully designed to introduce minimal complexity to Bitcoin's validation logic=
E= conomic Benefits:
  1. UTXO Set Cleanup=C2=A0- Removing millions o= f dust UTXOs could significantly reduce the UTXO set size
  2. E= nhanced Fungibility=C2=A0- Provides a pathway for stranded satoshi= s to rejoin economic circulation
  3. Long-term Miner Incentive<= /strong>=C2=A0- Creates an additional fee source as block rewards diminish<= /li>
  4. Complementary to Existing Solutions=C2=A0- Works a= longside batching, consolidation, and Lightning Network
Technical Implementat= ion:

The= proposal uses a special OP_RETURN output format in transactions to designa= te dust UTXOs for miner claiming:

OP_RETURN <= DUST_FEE_PREFIX> <dust_utxo_txid> <dust_utxo_vout> <signa= ture>

Miners can claim these UTXOs in their coinbase transaction if an= d only if the corresponding designation transaction is included in the same= block.

= Historical Context & Contributions:

It seems that previous discussions on dust = UTXOs have considered many approaches, including forced reclamation. This p= roposal avoids those controversies by requiring explicit user authorization= while still providing an economically rational path for dust cleanup.

<= p style=3D"caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0);">You can read th= e full proposal draft here:=C2=A0https://git= hub.com/satoshinotebook/BIPs/blob/main/unlocking-dust-utxos-as-transaction-= fees.md

I'd appreciate feedback on:

  1. Technical feasibility of the soft fork implementatio= n
  2. Security considerations and potential edge cases
  3. Economic= incentive alignment
  4. User experience concerns for wallet implementa= tions

Thank you for any feedback! I believe it offers a practical solution to a = growing challenge that will only become more significant as Bitcoin continu= es to mature and evolve.

With respect,

Nighttime Satoshi

nighttimesatoshi@gmail.com

https://satoshinotebook.com

--
You received this message because you are subscribed to the Google Groups &= quot;Bitcoin Development Mailing List" group.
To unsubscribe from this group and stop receiving emails from it, send an e= mail to bitcoind= ev+unsubscribe@googlegroups.com.
To view this discussion visit https://groups.google.com/d/msgid/bitcoind= ev/62b454f8-56be-4eae-ba3e-57c53d493f3dn%40googlegroups.com.
------=_Part_109827_943495608.1741458208270-- ------=_Part_109826_706320560.1741458208270--