Bitcoin enthusiast Danny unearthed a shrewd and unexpected tactic employed by one of the largest NFT trading markets, Magic Eden, sparking amusement in the community. As per Danny, Magic Eden has been cleverly shifting the cost burden of processing small output transactions onto Coinbase. Ideally, for every marketplace purchase on Magic Eden, there is a tiny output for the marketplace fee. These outputs, even though they are usually small—around 1,000 or 2,000 satoshis—can consolidate over time, making them cumbersome and costly.
By using the Coinbase account address to receive these tiny unspent transaction outputs [UTXOs], Bitcoin’s largest NFT trading market is effectively making the exchange responsible for paying the fees to consolidate them. Lauding the move, Danny explained that it is not only ingenious but also remarkably cost-effective for Magic Eden. By redirecting the burden of transaction fees to Coinbase,…
