Scaling Noncustodial Mining Payouts with CTV

Posted by AntoineP

Jun 6, 2025/14:01 UTC

The original discussion critiques a proposed scheme for scaling non-custodial mining payouts and maximizing fee revenues, highlighting the counterproductive nature of increasing block space usage for these payouts under normal fee conditions. It argues that such an approach would not effectively scale nor maximize fee revenues as initially claimed. Instead, it suggests that utilizing Ark for payouts could offer a more scalable solution by potentially reducing the average block space required for these transactions. This is due in part to the optimistic scenario where payouts consume less block space on average, making it a preferable alternative from a scalability standpoint.

Furthermore, the integration of Covenants Transaction (CTV) technology is presented as a beneficial addition to this approach. Specifically, CTV facilitates non-interactive Ark payouts, eliminating the need for the pool coordinator to engage in a pre-signing process with each miner. This feature is posited as a significant improvement for the efficiency and practicability of executing mining pool payouts.

In addition to addressing scalability and efficiency concerns, the text touches upon the broader issue of motivating changes within the Bitcoin protocol, specifically through the implementation of a CTV soft fork. The author advises against making exaggerated or unrealistic claims about the capabilities of proposed changes, suggesting that such tactics may detract from the genuine interest and engagement of the community. This advice underscores the importance of maintaining credibility and realistic expectations when proposing alterations to Bitcoin's framework.

Lastly, the mention of historical difficulties in altering Bitcoin's hardware or firmware, compared to the relative ease of modifying its protocol, serves as a reminder of the complex ecosystem surrounding cryptocurrency innovations. This observation, along with a nod to influential figures in the Bitcoin community, highlights the multifaceted considerations involved in proposing and implementing technological advancements within this space. The document concludes with a call for focused and realistic advocacy for technological improvements, such as the CTV soft fork, to enhance Bitcoin's functionality and efficiency.

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