I don't think you understand the concept of Fungibility.

Basically fungibility is non-discrimination. It's like me talking to a person on the internet, I don't know whether he is black or white or asian or other, so racism can't even possibly be considered, not that I am a racist, but the mere fact of somebody knowing some tiny public information can already be a point of discrimination.


It doesn't just mean the identity of the owner, or the source of the funds (criminal vs legal). It might also be the size of the transaction or the pattern of it.


* What if nodes/miners decide to censor or discriminate transactions above 10,000$ like we see with AML/KYC rules, regardless of origin. A high value transaction could potentially be flagged or considered dangerous, so merchants/nodes/miners could censor it or discriminate against it. It doesnt even have to be illegal money, it might just be a high value transaction, that people don't want themselves to associate with.

* What if people will censor addresses that make more than 200 tx /day. That could be considered suspicious too right? Possible money laundering activity? Who knows?

* Maybe I don't relay transactions with 666 balances because I'm religious. Maybe my cat died in 2007 so I don't relay TX that send 2007 DASH. You name it.



Do you understand what fungibility is? It's not just the proven or reasonably suspicious transactions that get discriminated/censored. It's every transaction that for whatever subjective standard is "suspicious" or unfavorable.



Anything can be used for discrimination. So you literally have to enforce equality on the blockchain, by anonymizing everything, but leaving it cryptographically verifiable and secure.