Brave UTXO Chunkinator
Brave UTXO Chunkinator
What is UTXO Chunkinator
What is UTXO Chunking?
UTXO chunking is a process of breaking down a large UTXO into multiple smaller ones. In Cardano, if you would like to spend a token, and that token belongs to a UTXO with 30 other tokens, you will have to include all 30 tokens in the input in order to make a transaction.
A larger input means a high transaction fee. Also, sometimes it may not be possible to build your transaction due to the max transaction size limit.
How does UTXO Chunking helps?
You can break a large UTXO with multiple tokens into multiple UTXO with single tokens using Brave UTXO Chunkinator. Here is a UTXO with 15 tokens.
If the owner of this wallet wants to sell the EMP token only, he will have to include all other 14 tokens in the transaction as well. However, we can resolve this problem by splitting the tokens in the output bundle. Like this:-
Now, if he wants to sell the EMF/LIFI/VYFI token, he will have to include that token only. Chunking large UTXO will get you a cheaper transaction fee and improve parallelism.