Topic: Consolidate small litecoin amounts to avoid costly transaction fees (Read 2155 times)

Watch the last transaction in block 357052 - http://explorer.litecoin.net/block/782fa104098eeee4743dd3e973787e48e9c196983914eb6d129e004c2be0962f

0.27220891 LTC sent without fee, but within an hour after received...

I managed to regroup 4 coins in my wallet without paying fee with values of 0.05 to 0.14 after 12 days (not before).

I do not get it... Can anybody explain, how to avoid fees with Litecoin? 

How to send BTC without fee it is quite clear now for me: 
- output >0.01 BTC
- size of transaction should be <1 KB (or 10KB?)
- priority of transaction should be high enough, it means that input coins should be old enough
   - for example 1 BTC have more than 144 confirmations (24 hours) or 0.1 BTC have more than 1440 confirmations (10 days)
   - with more inputs priority is average of all input coins - this means that with very large BTC coin I could gather small coins without fee and waiting

Someone keeps saying that if you wait a while, that Litecoin transaction fees on small deposits will go away. Now, its a mixed message, because there's two responses:
-a new Litecoin client will come out in "early May" that will make the client more tolerant to "dust" transactions from p2pool (Litecoin forums).
-If you wait X days (some say 3, some say 7, some say a couple weeks) the fees go away.

I've never bothered to test it to see what the actual number of days was, if that second item was even true. If I was to test, I'd make a second wallet (on a virtual machine), and just have that wallet for P2pool while keeping my MAIN wallet for my actual usage.

The crappy thing is this STILL makes your P2pool LTC transactions unusable for (3, 7, or 14) days, so you can't go out trading them or even USING them in any sense without paying a fee (closest analogy is an early withdrawal fee), and meanwhile, you just keep piling more p2pool dust transactions on that wallet. So, the transaction fee will never go away if you tried to withdraw your whole wallet. At the moment, its much easier to mine to a 1pct, 2 pct, etcetera pool and use auto-withdraw to use your coins immediately, than to pay a transaction fee that ends up being anywhere from 10 percent to 40 percent of your income. 2 percent vs 10 percent... big decision.

I am interested in that, too.

I even get the error "Transaction creation failed." if I choose an amount to consolidate, which is too big. This renders P2Pool pooled mining where you get lot of very small income nearly useless.

If I create a "Consolidation" address in my wallet and send all of the small litecoin quantities currently sitting in my wallet to this address, I get the transaction type "Payment to yourself" for 0.00. If I do this, will my entire sum of litecoins be consolidated now and avoid transaction fees going forward?

The other option I considered is creating a new litecoin wallet on another host and then just sending all of my small amounts as a grand sum to that address followed by sending the amount back to my original address in an effort to consolidate the coins.

If all of this won't work as I described, how do I consolidate many small litecoin amounts into a single sum?