Okay, that makes sense. What about the overage? Does it treat that portion like a small payment made without coinset selection?

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Depends on the wallet. It most likely will use your selected coins to burn them with the mint and get the exact amount to send on to the receiver. No wallet that allows you to overpay as of now, afaik. But some devs are debating that option for improved privacy. I love the idea.,

Ah, so sacrificial sats for privacy. This is not a bad idea.

Okay, I like this more than custodial lightning. Thanks for the info!