How to Consolidate UTXOs?
In blockchains such as Bitcoin and Mixin Network, UTXO (Unspent Transaction Output) is an accounting model where each transfer creates new UTXOs. When a wallet frequently receives many small payments, it can generate numerous small-value UTXOs. Over time, a wallet may accumulate a large number of small UTXOs, causing reduced transaction efficiency and increased fees.
Issues Caused by Excessive UTXOs
- Reduced Transaction Efficiency:
If your wallet contains many small-value UTXOs, transferring larger amounts requires combining multiple small UTXOs, adding complexity and potentially increasing transaction confirmation time.
- Increased Management Complexity:
A large number of small UTXOs makes wallet management more complex, negatively affecting performance and user experience.
What is UTXO Consolidation?
UTXO consolidation is like exchanging multiple smaller bills for a single larger bill. By consolidating several small UTXOs into fewer, larger UTXOs, you reduce the number of inputs required for future transactions, thus decreasing transaction data size and fees.
How to Consolidate UTXOs?
When your UTXO count exceeds 256, Mixin Messenger will automatically prompt you to Consolidate UTXOs during transfers. Simply follow the instructions and enter your PIN as prompted.
Updated on: 02/04/2025