Yes the shared utxo would have predefined conditions or a 'contract' that doesn't require hardly any updates, and is only executed on-chain when specific agreed-upcon conditions are met, like certain time lapses or actions.
Discussion
It definitely sounds interesting - I’m just very conservative with what I run on my node. I’m purposefully many versions of core behind the latest release. But if it requires no changes on my end, more power to you, and if it goes well I’ll experiment myself.
Has anyone done this on Litecoin yet?