Re: [Bitcoin-development] Blocking uneconomical UTXO creation

[Mark Friedenbach <mark@monetize.io>]

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On Mon, Mar 11, 2013 at 11:17 AM, Benjamin Lindner <ben@benlabs.net> wrote:

> > Just activate a non-proportional
> > demurrage (well, I won't complain if you just turn bitcoin into
> > freicoin, just think that non-proportional would be more acceptable by
> > most bitcoiners) that incentives old transactions to be moved
>
> You could delegate the decision to the user with a rule like:
>
> if (output<fee):
>  limit lifetime of the UTXO to 10 years.
> if (output>fee):
>  unlimited lifetime
>
> Then, when a user creates a transaction, he can decide whether he wants to
> have limited or unlimited lifetime. The rationale for limiting the lifetime
> for (output<fee) transactions is that they may have no inherent economic
> incentive to be spend.
>

If you think demurrage has a bad rep, wait until you see the response to
escheatment (which is what's really being proposed here).

UTXO growth over time is worst-case linear, while computational resources
increase exponentially. Mike nailed it on the head: all of this is a
solution in search of a problem.

Mark

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