Nov 25 - Nov 25, 2015
Though technically it promotes address reuse, it is still considered safe as the coalescing transaction should be deep enough in the blockchain to avoid re-org tomfoolery by the time the wallet user wants to spend funds from the address. The proposal was discussed on the Bitcoin-dev mailing list, where some issues were raised. One such issue is that the basic form of this encourages address reuse unless the wildcard can be constructed in a way that it matches a whole branch of an HD wallet. Another issue is the danger of reorgs, which can be addressed by including a block height indicating the maximum block that any UTXO can match and adding a minimum block height to prevent unnecessary scanning. Despite these concerns, the coalescing transaction is seen as a nice way to reduce the UTXO set.
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