Bitcoin UTXO Management - The report discusses concerns about managing Unspent Transaction Outputs (UTXOs) within the Bitcoin network [1] - The author initially disregarded concerns about non-monetary UTXOs, as their own UTXOs were not considered "trash" or suspiciously close to the dust limit [1] - A proposal to apply similar restrictions to monetary UTXOs to comply with government blacklists was rejected by the Bitcoin community [1] Community Sentiment - The Bitcoin community is portrayed as resistant to measures perceived as censorship or government overreach [1] - The author criticizes "Coretards" (likely referring to Bitcoin Core developers or those with similar views) implying disagreement with their approach [1]

RT CoinDesk Podcast Network (@CoinDeskPodcast)New Blockspace Pod: This New Bitcoin Proposal Would Burn Your Bitcoin, in partnership with @blockspace!"Your permissionless network is only as strong as the reprobates that use it, or rather as the rights for the reprobates that use it."We discuss:⚡ CAT burns UTXOs under a specific threshold⚡ 100 million inscriptions are likely junk⚡ Proposal is a soft fork consensus change👇🇨🇦⤵️ 🍕 ...

Proposal Overview - A new Bitcoin Improvement Proposal (BIP), "The Cat: Non-monetary UTXO Cleanup," has been drafted [1] - The proposal addresses the issue of non-monetary UTXO spam prevention and cleanup [1] - It is designed as a soft fork [1] Call for Review - The author is seeking serious and critical review of the BIP draft before further discussion [1]

Transaction Fee & Deflation - Etching transactions, exemplified by a "stupid frog GIF," incurred 82,000 sats fee, leading to 613,470 sats deflation [1] - OP_RETURN transactions, while saving UTXOs, resulted in zero deflation, with a 97,000 sats fee [1] - Industry analysis suggests increasing the dust limit to 5,000 sats could significantly increase the deflationary effect of etching, potentially requiring burning 9,295,000 sats for the "stupid frog GIF" [2] UTXO Management - Etching transactions added 1,859 UTXOs forever, costing 330 sats each [1] - OP_RETURN transactions spent 29 UTXOs, saving 1,888 UTXOs compared to etching [2] Technical Considerations - Etching transactions occupied 80 kB of space, while OP_RETURN transactions used 44 kB [1]

Blockchain Scalability & Security - Spammers can easily modify data inscription methods with minimal effort [1] - The only viable solution involves increasing the cost of UTXOs and enabling secure UTXO sharing for financial users via script paths [1]

RT ₿itcoinMonk | ₿itcoin Signal (@BitcoinMonk21)Wake up bitcoiners, Run knots!!!This big beautiful consolidation transaction has been in my mempool for the last six blocks and was actually rejected by Foundry USA 3 times, viaBTC, and Binance in favor of a bunch of garbage spam. This is where core 30 is taking us. Core nodes now favor bloating the utxo set over shrinking it.My knotty node has been trying to mine this transaction the entire time but it was displaced by spam that core 30 is optimized for. Why ...

Wallet Support Expansion - Gridplus wallets are expanding support beyond BTC from the UTXO family [1] - The expansion includes every UTXO chain on ShapeShift, such as BCH, DOGE, and LTC [1] - Support will also be added for THORChain, MAYAChain, and COSMOS [1]

Transaction Analysis - A seemingly inexpensive on-chain transaction involving a "weird frog gif" actually cost approximately $840 due to the burning of 613.47 thousand sats (1,859 outputs of 330 sats each) [1] - This type of transaction burns all outputs, sending UTXOs to unspendable addresses, harming the UTXO set by creating 1,859 outputs that will never be spent [1] Market Impact - Spammers incur significant financial losses through these transactions [2] - HODLers benefit from a 0.000000029% deflation resulting from these burns, which accumulates as such activities persist [2] Comparison - This costly spam is different from OP_RETURN, where storing a Mechanic picture cost only $120 for a bigger image without burning anything [2]

Transaction Analysis - A specific on-chain transaction involving a "weird frog gif" cost approximately $840, including the burning of 613.47 thousand sats [1] - The transaction burned 1.859 thousand outputs of 330 sats each, sending UTXOs to unspendable addresses [1] Impact on Bitcoin Network - The burning of UTXOs harms the UTXO set by creating 1.859 thousand outputs that will never be spent [1] - HODLers benefit from a 0.000000029% deflation due to these burns [2] Comparison with OP_RETURN - This type of spam transaction is costly for the perpetrators, unlike OP_RETURN transactions [2] - OP_RETURN allows storing larger images for a lower cost, such as $120, without burning any UTXOs [2]

Tooling & Development - A tool has been developed for @BitcoinLayers that analyzes TxIDs and generates a breakdown of the script used to spend a UTXO [1] - The tool auto-populates a layer's review with a verified script if it's related to a bridge program [1]