Ethereum UTXO Proposal Could Cut Permanent State Usage by 99.8%

• Ethereum UTXOs could cut permanent state usage for payments by 99.8%.
• State-invariant transactions account for 24% of Optimism and 37% of Base.
• Native UTXOs could separate one-time payments from persistent account state.

Ethereum researchers are examining whether the network stores more information as permanent state than some transactions actually require. The question has gained spotlight as a proposed native UTXO design seeks to separate one-time payments from persistent account state.

Under the proposal, simple payments could leave only a small spent marker in Ethereum’s state while their transaction details remain provable through historical commitments. The approach would preserve Ethereum’s account model while introducing a separate value mechanism that does not need to remain active indefinitely.

Ethereum UTXO Proposal Redefines What Becomes State

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