Hi Yanmaani,
>Merged mining at present only needs one hash for a merkle root, and that's stored in the coinbase.
Yes, but that method is not "blind", meaning BTC miners have to validate the merged-mined chain, which is a significant downside.
>It would be even simpler to add the following rules
That would require a specific soft fork, whereas the method described in my post avoids doing that.
>do I need to put in a transaction that burns bitcoins for the tx fee
The blind merged-mined chain (which I call a "spacechain") needs its own native token in order to pay for fees. The mechanism I proposed for that is the perpetual one-way peg, which allows fair "spacecoin" creation by burning BTC, and circumvents creating bad speculative altcoin incentives. Anyone can create a spacechain block and take the fees, and then try to get BTC miners to include it by paying a higher fee than others (via RBF).
>That isn't free in terms of storage
It's not necessary for everyone to burn individually. My preferred design is to only let BMM block creators burn BTC, then others will have to buy spacecoins from them. This limits the potential burn outputs to one per block (likely much less, because BTC will logically only get burned when spacecoin demand increases). It's also possible to create more spacechains inside the initial spacechain, at no additional storage cost to Bitcoin.
I highly recommend checking out the links in
my prior post if you wish to learn more, particularly the
video.
Cheers,
Ruben