Just wondering, what kind of protection user get from blacklist during CoinJoin?
For those providing liquidity, it protects their Bitcoins. For users, it's the assurance than none of the UTXOs are "tainted", whatever that means for the government. It's trade off if you want to use Wasabi, or if you don't, you can use ChipMixer.
I disagree for following reason.
1. Each government/exchange/analysis have different way to determine whether an UTXO is tainted or not.
2. It's unlikely UTXO from Wasabi CJ not treated suspiciously after blacklist is activated. AFAIK Wasabi team say it's not activated yet.
3. Regardless of existence of blacklist, liquidator's Bitcoin still safe unless there are bug on Wasabi Wallet or WabiSabi protocol which allow liquidator's Bitcoin to be stolen/unspendable.
But that's not the point, and I'm not debating whether the "taint" is even real or not. The fact is, with the Tornado sanction, the government showed that it WILL sanction a non-person entity, a program for mixing outputs, if they see that it is mixing "tainted" outputs. I believe WasabiWallet's trade off, is merely trying to avoid a sanction by blocking "tainted" outputs. "Taint" as defined by "them", they invented it. Taint actually doesn't exist in the blockchain.