Subject: Re: [bitcoin-dev] Generalized covenants with taproot enable riskless or risky lending, prevent credit inflation through fractional reserve

From: ZmnSCPxj <[email-masked]>
Date: Sat, 06 Jul 2019 00:17:49 +0000

Good morning Eric,

> But it’s worth noting that early recovery of the UTXO entirely eliminates the value of the time lock cost to the ad market. The most obvious example is one encumbering the coin to himself, then releasing it with his own two signatures whenever he wants. In other words, there is no encumbrance at all, just a bunch of pointless obscurantion.

You still do not understand.
I strongly suggest actually reading the post instead of skimming it.

The advertisement is broadcast to new nodes on the ad network if and only if its backing UTXO remains unspent.
Once the UTXO is spent, then the advertisement is considered no longer valid and will be outright deleted by existing nodes, and new nodes will not learn of them (and would consider it spam if it is forced to them when the UTXO is already spent, possibly banning the node that pushes the advertisement at them).

Thus the locked-ness of the UTXO is the lifetime of the advertisement.
Once you disencumber the coins (whether your own, or rented) then your advertisement is gone; forever.
Your advertisement exists only as long as the UTXO is unspent.

Regards.
ZmnSCPxj