A Taproot-native (re-)bindable transaction bundle proposal

James provides a detailed analysis of the current state of Bitcoin transactions, specifically focusing on the usage of different address types and the value transferred through them. He clarifies his methodology by explaining that he ran a script to assess the value of newly created outputs by address type, revealing that 93.5% of all output-value created in the last three months was non-P2TR (Pay to Taproot). This statistic suggests that a significant majority of Bitcoin's value transfer does not utilize the newer P2TR address type, challenging the notion that witness version 0 (wit v0) addresses are becoming obsolete.

Further elaborating on the adoption of Taproot, James references research from mempool.space, which indicates that a substantial portion (86%) of P2TR Unspent Transaction Outputs (UTXOs) hold less than 1000 satoshis. This observation lends weight to the argument that despite the advantages offered by Taproot, such as improved efficiency and privacy through Schnorr signatures, its actual utilization for substantial value transfers remains limited. The implication here is that the anticipated shift towards Taproot for higher-value transactions has not materialized as expected.

James's commentary implicitly critiques the narrative surrounding the supposed obsolescence of wit v0 addresses. By presenting data on the continued reliance on non-P2TR transactions for the overwhelming majority of value transfers, he underscores the practical reality of Bitcoin usage. His perspective highlights a divergence between theoretical benefits associated with newer technologies like Taproot and their real-world adoption.

In summarizing his position, James defends the relevance of wit v0 addresses based on empirical evidence of their widespread use and the significant value they continue to carry in the Bitcoin ecosystem. His analysis suggests that while innovation in digital currency protocols is important, the actual patterns of user behavior and adoption play a crucial role in determining the practical utility of such technological advancements.