Subject: Re: [Bitcoin-development] Blocking uneconomical UTXO creation

From: Jorge Timón <[email-masked]>
Date: Mon, 11 Mar 2013 12:01:09 +0100

On 3/10/13, Peter Todd <[email-masked]> wrote:
> It's also been suggested multiple times to make transaction outputs with
> a value less than the transaction fee non-standard, either with a fixed
> constant or by some sort of measurement.

As said on the bitcointalk thread, I think this is the wrong approach.
This way you effectively disable legitimate use cases for payments
that "are worth" less than the fees like smart property/colored coins.
While the transactions pay fees, they should not be considered spam
regardless of how little the quantities being moved are.

Then your only concern are unspent outputs and comparing fees with
values doesn't help in any way. 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 and
destroys unspent transactions with small amounts that don't move to
another address periodically. This has been proposed many times before
too, and I think it makes a lot more sense.