Scaling Noncustodial Mining Payouts with CTV

The correspondence expresses gratitude towards the recipient for their contribution to a covenants wiki and acknowledges their efforts in cataloging a particular debate. The discussion centers on addressing specific issues within the realm of cryptocurrency mining, particularly focusing on non-custodial mining payouts. The primary concerns highlighted include the undue influence of ASIC firmware vendors on the sustainability of non-custodial mining payouts, the limitations imposed on the number of payouts within each coinbase transaction, and the disincentives for non-custodial pools to maximize the number of payouts due to potential transaction fee profits.

The implementation of the suggested solutions is poised to bring three significant benefits. Firstly, it would curtail the influence of ASIC firmware vendors, thereby fostering a more equitable environment for non-custodial mining operations. Secondly, by removing the cap on the number of payouts per coinbase, it would lower the minimum threshold for on-chain payouts to the dust limit, which is markedly less than the current thresholds observed, for instance, at Ocean. This adjustment aims to facilitate smaller, more frequent payouts, enhancing the viability of non-custodial mining for participants. Lastly, the proposed changes seek to eliminate the current disincentive for non-custodial pools to limit payouts. Such a move is expected to promote fairness and increase the profitability for those involved in non-custodial mining by ensuring that transaction fees do not unduly benefit pool operators at the miners' expense.