Federations are great privacy tools for participants but public mints will become really tough to use for adding privacy to onchain payouts.
If you're operating a public mint I think you'll be wise to only sign on-chain redemptions for KYC'd users or amounts lower than AML allows. You'll be nearly as bad as an exchange with the benefit you'll have a great solution for use within your mint/lightning (for mints with competent gateways) to avoid the high fees of onchain.
Public gateways will also likely need to keep AML in mind and only sign for smaller lightning txs. Otherwise you'll likely be outside of the same money transmission BS they're going after Samourai with.
The alternative would be to use a private mint that you don't know the guardians (at least publicly) so it'll be tougher for prosecutors to find who to go after. The reverse is that it'll be much easier for those guardians to collude and walk away with everything they hold.
Patrick
npub1pa…79h9a
2024-04-25 18:05:58
in reply to nevent1q…gsud
Author Public Key
npub1patrlck0muvqevgytp4etpen0xsvrlw0hscp4qxgy40n852lqwwsz79h9aPublished at
2024-04-25 18:05:58Event JSON
{
"id": "b252d82478c5114c2784fbc82368bc7c629cc599e2fe1828d915af8bbab15020",
"pubkey": "0f563fe2cfdf180cb104586b95873379a0c1fdcfbc301a80c8255f33d15f039d",
"created_at": 1714061158,
"kind": 1,
"tags": [
[
"e",
"627d10ec52bee50a2bac130780ac44667735c527a2130857faafd34dca46c339",
"wss://nostr.bitcoiner.social",
"root"
],
[
"p",
"6a4ba9039bb5fb34d7eb157203f5629d496348b97be832a8b037aed4e0aa26e4"
],
[
"p",
"0f563fe2cfdf180cb104586b95873379a0c1fdcfbc301a80c8255f33d15f039d"
],
[
"p",
"1577e4599dd10c863498fe3c20bd82aafaf829a595ce83c5cf8ac3463531b09b"
]
],
"content": "Federations are great privacy tools for participants but public mints will become really tough to use for adding privacy to onchain payouts. \n\nIf you're operating a public mint I think you'll be wise to only sign on-chain redemptions for KYC'd users or amounts lower than AML allows. You'll be nearly as bad as an exchange with the benefit you'll have a great solution for use within your mint/lightning (for mints with competent gateways) to avoid the high fees of onchain.\n\nPublic gateways will also likely need to keep AML in mind and only sign for smaller lightning txs. Otherwise you'll likely be outside of the same money transmission BS they're going after Samourai with.\n\nThe alternative would be to use a private mint that you don't know the guardians (at least publicly) so it'll be tougher for prosecutors to find who to go after. The reverse is that it'll be much easier for those guardians to collude and walk away with everything they hold.",
"sig": "655ee5f8e0495fa6ebddf408db007d9cefd96247dcdd1e38b23ab6951fcb1ff5c2f1c6e21825c07e60d4ad58cd8759294628ede5f007038449031ea0fd9266c3"
}