Dust Expiry: Clean the UTXO set from spam

Posted by anons191

May 20, 2025/05:45 UTC

The scalability challenge posed by UTXO bloat in the Bitcoin network is significant, and while efforts to address it are necessary, the proposed method of expiring or pruning small, aged UTXOs raises serious concerns. This approach, which would render certain UTXOs unspendable based on arbitrary thresholds, represents a profound change to the Bitcoin protocol that could be viewed as a form of protocol-level confiscation. Such a change would fundamentally alter the trust model upon which Bitcoin is built. Traditionally, users have relied on the principle that possession of the private key guarantees the safety of their coins, irrespective of the size or age of the UTXO. This principle is crucial for ensuring the security and confidence of all Bitcoin users, including long-term holders, individuals with forgotten wallets, and low-income participants who might be disproportionately affected by these changes.

Moreover, implementing rules to expire or prune UTXOs sets a precedent that may lead to future proposals seeking to invalidate UTXOs under various pretexts, further eroding the foundational promise of Bitcoin. Instead of pursuing strategies that compromise the inviolability of user funds, the community should focus on alternative solutions that adhere to Bitcoin's core principles. These include encouraging UTXO consolidation through dynamic fee markets, enhancing wallet user experience to deter the generation of spammy outputs, and developing fee policies aimed at penalizing the creation of dust transactions without making them invalid. Addressing the UTXO set's cleanliness is crucial, but it must not come at the expense of violating the fundamental assurance Bitcoin offers: that users' assets belong to them unequivocally, regardless of their value or duration of ownership.

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