Why does Kaspa's storage_mass formula make tiny-UTXO micropayments impractical?

Kaspa's KIP-9 storage_mass formula charges transactions based on how small their outputs are, making large numbers of tiny UTXOs prohibitively expensive to send. In Kaspa's UTXO model every unspent output occupies network storage, so KIP-9 introduced storage_mass to discourage ledger bloat from dust amounts. The formula uses the harmonic mean of output values, which drops sharply when outputs are small — meaning the smaller the payment amounts, the steeper the storage penalty. For anyone hoping to build micropayment systems on Kaspa, this means the straightforward approach of splitting payments into many tiny UTXOs triggers high storage costs, so a different architecture is required.

Learn more ›