What open source #Bitcoin wallets support decaying multisig? #asknostr
Discussion
I think this might be what you are looking for. I don't think it works but decaying keys but yet time locks that need to be renewed on a annual basis (I believe the wallet automates this). Maybe you will able to accomplish a lot of the same things...
Have you used this wallet?
I tried it a year or 2 ago, seemed to work but I deferred digging any deeper at the time in lieu of other pursuits. There was another one too I think called MyCitadel?
I have "run the software" but not yet with any corn.
I am trying to find the best inheritance setup. And so far this is toping my list.
Sorry for the newb question, but is a decaying multisig exactally what it sounds like? Multisig for a set period of time? I would think That has so many applications. I don't think I have run across that term before.
Yeah, it’s a generic term meaning the quorum decreases over time. So say your base case is 3-of-5 multisig. You could make an address which allows 3-of-5 at any time, then allows 2-of-5 after say a year, and then 1-of-5 after another year.
That way, in a catastrophe, like losing 4 keys, you can still recover the funds if you just wait.
You can also have an initial unspendable period. So say you make an address that is completely unspendable for 1 month, then 3-of-5 for a year, etc. Your attacker can’t force you to give them coins until the first month is up. Literally impossible to comply with the wrench attack.
By staggering the durations, you can have a rotating vault. So say you make 4 addresses, fully locked at 3-month, 6-month, 9-month and 12-month intervals. Each quarter, one fourth of your coins become available to spend. When that happens, move what you need to your hot wallet, then roll the rest into a fresh 12-month address.
This dovetails into inheritance planning. Your decaying multisig can have additional rules that make the coins spendable by your heirs—that is, different keys from your regular quorum, but only after the decay period is completed.
All of this is made possible by the Bitcoin script protocol already, and Taproot adds privacy. I’m trying to find out what existing open source wallets (if any) provide UX for these cases.
I see you have a podcast. If you need a guest, I’m available to explain this (or anything else).
Thanks for the fantastic explanation. Makes perfect sense. I could see this working great for some different loan scenarios, collaboration projects or other "promise of future payment" situations.
I have some intro Bitcoin content planned for 2025. I put your name on my list to reach out to for sure.
Have an awesome day.