Ethereum UTXO Proposal Could Cut Permanent State Usage by 99.8%

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Researchers propose a native UTXO design for Ethereum that separates one-time payments from persistent account state so simple payments leave only a small spent marker while transaction details remain provable via historical commitments. The proposal could cut permanent state usage by 99.8% and targets workloads where state-invariant transactions already account for 24% of Optimism and 37% of Base, potentially reducing storage bloat, lowering node costs and improving scalability and adoption for Ethereum DeFi and crypto applications.
- 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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