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Does an uneconomical output need to be kept in the UTXO set?

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Bitcoin News / Bitcoin Stack Exchange 179 Views

Bitcoin Core removes provably unspendable outputs from the UTXO set, since by definition we know they will never be used to verify new transactions.

One could, in theory, do the same for UTXOs that are highly unlikely to ever be spent, such as those that are highly uneconomical as per your question. However, this introduces a very real risk of splitting yourself off the chain. If just a single one of those UTXOs is spent in a confirmed transaction, your node would reject that block (and any subsequent blocks building on it) since one of its transactions is spending an input that according to your database does not exist.

While it is reasonable to assume that most uneconomical outputs will not be spent (in the current fee environment), it is extremely risky to assume that none of them will be spent. They can be spent accidentally, as part of L2 protocols, or by an attacker that wants to exploit this vulnerability. As such, removing any UTXO that is not provably unspendable would be unwise.


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