While I understand the concept of rotating addresses, I don't understand how it's useful here. Let's say that this was properly implemented in p2pool. Who does it benefit? As a miner, I still have to connect to a node using a BTC address. I can't change that address constantly, or I'd always be ramping up shares on the chain for payout, which is exactly the opposite of what I want in a PPLNS pool.
What am I missing?
The benefit is specifically for the node owner using the bitcoind wallet on the node for mining income.
By using this, rather then setting an address with the miner you can simply use a name like AntS3 or SP20, the hash power will go to the node default address, which will now be cycled automatically increasing privacy and security.
To be honest the security benefits are a trade off, I would still feel better about not keeping any private keys on the node itself, but if privacy is a big concern for you this is probably a good trade off.
I get the concept behind it, and you cited precisely the example I was thinking about in my head. However, this example still fails to benefit the node owner because the mining address is constantly cycling, which still means the node owner's address is ramping up on shares. Sure, I suppose at the end of the day it would add up to the same thing - you'd just get a whole bunch of per share payouts to your node's cycling addresses instead of a larger payout to a single address. However, that increases your transaction fees for spending those coins in the future because there'd have to be far more inputs.
Like I wrote, I just don't see how this could possibly benefit anyone except for the most paranoid tin-hat wearing folks running their own nodes. For example, I run my own node locally, as well as a VPS-hosted node for backup when I travel. I also fall back on your node in case neither of mine is available. On my own nodes, sure I could put in something like a name of "S3_1" or "SP20" for each of my miners; however, configuration for your node forces me back into using a proper BTC address (which does not cycle)... unless of course I wish to donate my hashing power to you
