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

From: Mark Friedenbach <[email-masked]>
Date: Mon, 11 Mar 2013 11:59:14 -0700

On Mon, Mar 11, 2013 at 11:17 AM, Benjamin Lindner <[email-masked]> 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