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Re: [BOUNTY] A patch for bitcoind to modify tx list in "getmemorypool"
by
btharper
on 20/08/2012, 04:55:29 UTC
What's the benefit of "coin melting"?
If you just want to merge multiple "junk" inputs to one output, why do you add any tx fee at all?
I imagine you only use 'coin melting' if the accepted method of calculating which coins are 'tainted' only looks at inputs and outputs, and ignores transaction fees.

If coin melting ever becomes popular then it will stop being effective, as the taint calculations start taking it into account.
Unlikely unless you want to bankrupt miners by considering their block rewards tainted.
It may be possible to analyze based on how much fee they're giving away. If a miner accepts a 0.001 BTC tainted fee then it's taint might negligibly increase. If a miner accepts a 3 BTC tx fee with no outputs, then the coin is probably being melted.

Losses from orphaned blocks might just be part of the cost of business for this type of transaction. I could also see it as an incentive to melt slowly as well.