Topic: [Aug 2022] Mempool empty! Use this opportunity to Consolidate your small inputs! - page 41. (Read 88281 times)

it might be feasible but I don't think it is an effective way to spam the mempool to make fees higher.

They could withdraw each of those ~0.00531800 BTC amounts to their own wallet and then split it into 973 dust limit outputs of 0.00000546. Then consolidating that back in batches 50 inputs would create 19 transactions of 10Kb each. Do that 6 times to fill a block.


Edit. Some more relevant information. F2pool which was the biggest until recent events in China has a minimum withdrawal of 0.005 BTC with the option to have daily automatic payouts for customers with a balance higher than that. That makes there being a large number of payouts in the value range seen quite reasonable.

This might be a fair point. Although some of the input addresses I reviewed had daily transactions to a huobi deposit address.

I don't know if huobi allows for users to generate additional deposit addresses. I don't think it would be especially difficult for a single miner to have the ability to procure multiple sets of KYC documents, see the 2019 april fools joke, especially the prevalence of people willing to post their ID in order to collect "bounty" rewards.

I haven't mined for a long time but it always used to be that each pool would have 5 to 10 whales and a few thousand minnows. Those whales would probably account for 70% of the rewards in each block. Using my guestimate would reduce the 1250 outputs to 375 but then the small guys don't get to minimum withdrawal on every blocked mined. Some might be big enough to get paid every day and others every week or 2.

That makes sense. If they don't pay to consolidate their outputs, Houbi doesn't charge them for it, and the mining pool has a certain minimum withdrawal (possibly without charging a fee), this just means they get their earnings converted to fiat on a (very) regular basis.

Fees have been high for months in a row, so they could indeed be clearing up their backlog.

Now this makes me curious what percentage of all Bitcoin transactions comes from miners. Let's ignore for a moment the large miners, and assume there are only small miners in pools. They all withdraw their earnings when they reach 0.005 BTC. That means every 6.25 BTC block reward is split up into 1250 outputs for every block! That takes a significant part of block space to consolidate again.

TheQuin already answered this in his two replies.
Here's a review:

• Almost all mining pools have a setting where you can set your preferred auto-withdrawal amount, those users have set their value to 0.005BTC.
  Or it must be the widely used default minimum value that's why the number of withdrawals with that amount is higher than the rest. (like F2Pool, Antpool, Poolin, BTC.com, etc.)
• Most Exhanges sort their inputs (users' deposits) based on their value so when they consolidate, those with the close to similar values are the ones used together as inputs.

Plus, don't take an exchange like a wallet with few available inputs, some of those aren't from miners and we don't have a reliable way to check if all those are from miners, moreover from a single miner just because the amounts are approximately the same.

---

I think there's no reason for me to extend the discussion about the "blockchain evidence" since your previous reply already answered your earlier post.
Like I said, Exchanges always consolidate their users' deposits; and the above.

regards

Mining pools have a minimum withdrawal amount. They have many thousands of customers who all withdraw as soon as they can. Most of them are based in China so they use Huobi.
Huobi could be consolidating several months worth of deposits at one time. As the software they use groups deposits by value you'll probably find a lot of deposits from the same mining pool together.

Does Huobi even have a facility to generate new deposit addresses? Most exchanges do not. If they don't then this miner would have somehow managed to open thousands of accounts and get them all through KYC. I think that's unlikely. Even more unlikely that if their aim was to spam the mempool that they would use an exchange rather than their own wallet.

This transaction is actually from huobi, not the miners. The reason huobi has these inputs is because miners deposited mining rewards into their huobi accounts.

I first saw this transaction a few days ago, but only learned that the addresses in question belong to huobi yesterday. A miner who sends many small deposits to an exchange will pay to have the outputs sent to the exchange, but will never pay to have the outputs consolidated.

Even though your point about the fee rate is not applicable after considering the input addresses belong to huobi, a miner trying to increase fees for users will not fill their blocks with high paying transactions, they will fill their blocks with lower-paying transactions so that users will have to bid against higher paying users.

They are withdrawing from the pool to multiple addresses in a day. This in itself is a little extreme IMO if the withdrawals were made throughout the day. They are making withdrawals at around the same time, but may not be processed at exactly the same time, so one withdrawal might be processed at 12:00, another at 12:10, another at 12:20, but I don't think they are evenly spread out. I think most likely, a miner had many ASICs, and x number of ASIC would receive its mining earnings from that day to huobi address y every day.

How do you account for the fact that so many miners are sending approximately the same amount to huobi, often on a daily basis?

That doesn't mean they do this just to increase fees for other Bitcoin users, especially since the transaction pays only 3.02 sat/vbyte in fee. That's barely competing with other users.

What if you don't trust the pool much? It's better to have regular payouts than fall victim to a potential exit scam.

This makes sense. I'm glad to see (some) exchanges are starting to be more sensible with fees compared to (for instance) Binance. I like how mempool gets filled with low-fee transactions in batches when fees are low. This is much better than competing against exchanges for the highest fee later on.

Ah, so it's a totally different kind of transaction.
I don't get how is that a "blockchain evidence" since you already know that the transaction is from Houbi exchange and Exchanges always consolidate their users' deposits.

TheQuin is on point, most consolidation transactions by Exhanges (even the ones that I use) have almost identical input values.

That is a typical deposit wallet consolidation transaction. There's an automated program from Bitpay that many services use. It'll go through the deposits in descending value order and consolidate them into a single address. Then use those outputs consolidated together to fund the cold wallet and withdrawal hot wallet.


It is hardly surprising that many miners based in China would use Huobi to cash out into fiat to pay their bills. It's not really evidence that it is just one miner making many transactions to spam the mempool.

Today, most pools will have the coinbase transaction go to a static address, sometimes will move their coin to an intermediary address and subsequently pay out withdrawal requests to miners who are requesting withdrawals. Eligius was a pool that would skip the first two steps, they would payout to miners directly based on their account threshold settings automatically.

I am referring to txid d3cccd9d47798f9e26f9a95d4ebc2da651d66e606154284afaed013bbaad4850.  All inputs are from what appear to be unique addresses, and all are in the amount of 0.005318xx BTC, or 0.005317xx BTC. The inputs appear to be payout addresses from mining pools.

One of the addresses that have an input that is part of the above transaction is 1Le7X5MkbXjhEWwBJ3NHzAqFatCvjHMu8h, and it appears this address belongs to Huobi. It appears that Huobi is consolidating their unspent outputs, maybe after reading this thread. It also appears that one or more miners its receiving their withdrawals/payouts from pools to deposit addresses at Huobi.

Looking at https://www.walletexplorer.com/wallet/Huobi.com-2 it appears Huobi has created well over a thousand if not many thousand transactions of consolidation transactions.

You mean something like this? (coinbase transaction with lots of outputs): 0000000000000000046fafea54ec57f8b1d030e74d0d15545e0534fbd6e02f4d

That was a mining pool that had been directly sending the block rewards to its miners.
This old pool is one of the example (that transaction is one of theirs): btc.com/stats/pool/Eligius
check the older block heights because most of the newer ones have "normal" coinbase transaction.

This would be more than a theory. There is blockchain evidence that a miner is receiving mining payouts to many addresses. I cannot imagine any good reason to do this, except maybe for privacy reasons, but their consolidating the outputs removes any privacy advantage they had by doing this.

I believe they were very small amounts, not dust but also too small that made me wonder who makes such payments (5 to 10 cents). I think they ended up double spending the inputs of those transactions because I also can not find anything in previous blocks with such characteristics.

That happened in 2018 when the mempool finally cleared out after many months of very high fees. It was definitely 5 sats but I can't remember for sure which pool(s). After a few weeks they realised they were losing out to other pools that were including them and stopped doing it.

Your link doesn't show them anymore. Did they create 1000 dust outputs, or were they sending real amounts?

It's terrible: they've replaced useful information by colored bouncing dots. Now it looks like they hired a 4 year old girl to "improve" the site.

I've read that theory before. At some point there was even a mining pool (Antpool?) that didn't include transactions with a fee lower than 5 (?) sat/byte.

That is a good example of an entity consolidating its inputs. One of the addresses associated with that transaction, 1NN4Q7ZGx5sNnz6iuCo75EkMLGWfsawWTv has received transactions that can reasonably be traced back to the btc.com mining pool. My guess is that is a person consolidating his mining earnings. Another address associated with that transaction, 1PTUJMrTt6KFD8oMzS4jCgh42qZGxW6mHt received outputs that can reasonably be traced back to Antpool.

I might conclude that this person has multiple ASICs that receive their mining payouts to different addresses. If this is correct, it would be insane. Alternatively, it could be possible that these mining pools are sending transactions to themselves in order to artificially increase transaction fees.

Yes, I cited that transaction in my above post:

That's my bad, I should have been more clear. Majority of those transaction are consolidating and there are other transactions paying nearly 1000 recipients. Some of them seem to have confirmed or disappeared. You can still find a couple like this one: https://blockchair.com/bitcoin/transaction/5208ecff5b3fe7c1e7c852a6b8e2c323832d3e40221f28692b43bbe39b6116c1 (520 outputs).

Interesting find.

P.S. blockchair's new change is horrible, it makes searching very hard since the table keeps getting messed up.

Looking through the last block I didn't see any paying to many recipients, just consolidation like this one.

https://btc.com/d3cccd9d47798f9e26f9a95d4ebc2da651d66e606154284afaed013bbaad4850

That's 100 inputs all of a similar size and there are lots of transactions all doing the same indicating it's a service using an automated consolidation of their deposits.

If they are paying 1000 recipients, they are not consolidating inputs, they are splitting inputs. They could also be advertising spam, such as 5208ecff5b3fe7c1e7c852a6b8e2c323832d3e40221f28692b43bbe39b6116c1 that is clearing trying to advertise their altcoin.