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Date: Mon, 11 Mar 2013 11:59:14 -0700
Message-ID: <CACh7GpHnAc8JBce4uvtU9Qw+1Th9R9_6ySc83ZEBGC-tX+y_9A@mail.gmail.com>
From: Mark Friedenbach <mark@monetize.io>
To: Benjamin Lindner <ben@benlabs.net>
Content-Type: multipart/alternative; boundary=e89a8f3ba6e3e135e204d7aac43a
Cc: Bitcoin Dev <bitcoin-development@lists.sourceforge.net>
Subject: Re: [Bitcoin-development] Blocking uneconomical UTXO creation
Precedence: list

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On Mon, Mar 11, 2013 at 11:17 AM, Benjamin Lindner <ben@benlabs.net> wrote:

> > Just activate a non-proportional
> > demurrage (well, I won't complain if you just turn bitcoin into
> > freicoin, just think that non-proportional would be more acceptable by
> > most bitcoiners) that incentives old transactions to be moved
>
> You could delegate the decision to the user with a rule like:
>
> if (output<fee):
>  limit lifetime of the UTXO to 10 years.
> if (output>fee):
>  unlimited lifetime
>
> Then, when a user creates a transaction, he can decide whether he wants to
> have limited or unlimited lifetime. The rationale for limiting the lifetime
> for (output<fee) transactions is that they may have no inherent economic
> incentive to be spend.
>

If you think demurrage has a bad rep, wait until you see the response to
escheatment (which is what's really being proposed here).

UTXO growth over time is worst-case linear, while computational resources
increase exponentially. Mike nailed it on the head: all of this is a
solution in search of a problem.

Mark

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<div dir=3D"ltr"><div class=3D"gmail_extra"><div class=3D"gmail_quote">On M=
on, Mar 11, 2013 at 11:17 AM, Benjamin Lindner <span dir=3D"ltr">&lt;<a hre=
f=3D"mailto:ben@benlabs.net" target=3D"_blank">ben@benlabs.net</a>&gt;</spa=
n> wrote:<br>
<blockquote class=3D"gmail_quote" style=3D"margin:0px 0px 0px 0.8ex;border-=
left:1px solid rgb(204,204,204);padding-left:1ex"><div class=3D"im">&gt; Ju=
st activate a non-proportional<br>
</div><div class=3D"im">&gt; demurrage (well, I won&#39;t complain if you j=
ust turn bitcoin into<br>
&gt; freicoin, just think that non-proportional would be more acceptable by=
<br>
&gt; most bitcoiners) that incentives old transactions to be moved<br>
<br>
</div>You could delegate the decision to the user with a rule like:<br>
<br>
if (output&lt;fee):<br>
=C2=A0limit lifetime of the UTXO to 10 years.<br>
if (output&gt;fee):<br>
=C2=A0unlimited lifetime<br>
<br>
Then, when a user creates a transaction, he can decide whether he wants to =
have limited or unlimited lifetime. The rationale for limiting the lifetime=
 for (output&lt;fee) transactions is that they may have no inherent economi=
c incentive to be spend.<br>
</blockquote></div><br></div><div class=3D"gmail_extra"></div><div class=3D=
"gmail_extra">If you think demurrage has a bad rep, wait until you see the =
response to escheatment (which is what&#39;s really being proposed here).<b=
r>
<br>UTXO growth over time is worst-case linear, while computational resourc=
es increase exponentially. Mike nailed it on the head: all of this is a sol=
ution in search of a problem.<br><br></div><div class=3D"gmail_extra">Mark<=
br>
</div></div>

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