I am making a tool to safely remove dust UTXOs from a wallet in a privacy-preserving way. My main goals are:
- Never mix these dust inputs with my other UTXOs, to avoid linking my addresses.
- Ideally, remove all dust completely, so I’m not left with new dust afterward.
- Create valid, standard transactions accepted by Bitcoin Core and the network.
So far, I have this approach working in regtest mode:
Send all accumulated dust to a burn address
Idea: Create a transaction with all dust UTXOs as inputs and a single output sending all value directly to a known burn address (e.g., "1BitcoinEaterAddressDontSendf59kuE").
Issue: If the total dust amount is below the standard amount/fee threshold, this transaction will be rejected.
My question
How can I safely remove dust UTXOs completely without creating new dust outputs or mixing these dust inputs with my regular funds?
Is there a recommended best practice or standard technique for this situation other than simply leaving the dust unspent?
