HOdlcoin Improvement Proposal 002

HIP: 002–version 1
Layer: Consensus (soft fork)
Title: Expire Small Transaction Outputs
Author: Free Trade
Status: Proposal
Created: 2017–07–18
License: BSD-2-Clause

Abstract

Expire small transaction outputs after a proportionate amount of time.

Motivation

To reduce resources required to run the HOdlcoin network by pruning the UTXO set that needs to be maintained by nodes.

Rationale

Currently over 50% of UTXOs on the Bitcoin chain have balances of less than .001 BTC, and represent only .01% of the total coins. Many of these balances are abandoned, and a disproportionate use of resources is required to support them. By expiring these kind of outputs after a reasonable amount of time, we can avoid a similar situation arising with HOdlcoin.
Source:https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html

Details

After 2 years outputs of .00000099 HODL and below are expired
After 3 years outputs of .00000999 HODL and below are expired
After 4 years outputs of .00009999 HODL and below are expired
After 5 years outputs of .00099999 HODL and below are expired

The expiry test will not take interest earned into account, so a .00009999 balance that has earned .00000005 will still be treated as a .00009999 balance and expired after 4 years.

Blocks containing transactions referencing UTXOs that are considered expired will not be considered valid by updated nodes.

Deployment

This HIP is presumed deployed and activated as of a block height 1 month after the HIP is accepted by Nutocracy motion and code deployed.

Backward Compatibility

This is a tightening of rules and so does not require a hard fork. Existing clients will accept blocks created under the new rules.