Up to 65% reduction in Bitcoin network withdrawal fees due to improved block space utilization
in October 2023, we announced significant improvements to our wallet infrastructure, including the introduction of newly minted wallet addresses for all users. As a result, the size of all transactions on BitMEX has been significantly reduced, improving block space usage for all Bitcoin users.
What is the impact? We now offer BitMEX users significantly reduced Bitcoin network fees for withdrawals.
This is made possible because all BitMEX addresses used for deposits and withdrawals are now MPC single-signature native SegWit addresses (also known as Bech32 or “bc1” prefix addresses).
BitMEX has always and continues to pass 100% of withdrawal fees directly to miners as on-chain transaction fees. Therefore, the minimum network fee for Bitcoin withdrawals is set dynamically according to the prevailing Mempool fee rate and can be found on the withdrawal page.
Our historical multi-signature wallet imposed a worst-case spend of 618vB (for a single input), while our new wallet reduces this to 222vB. This means we are bidding on less block space, resulting in a 50-65% reduction in costs for users (compared to previous withdrawal costs for the same fee rate).
Because mempool spikes are often sudden and unpredictable, we still require a minimum fee for transactions. However, we have halved the minimum fee from 0.0002 BTC to 0.0001 BTC, making it the lowest in the industry.
What is the impact on the Bitcoin network?
As part of our commitment to the health of the Bitcoin ecosystem, we have removed over 400,000 legacy multi-signature UTXOs from the unspent transaction set held by all full Bitcoin nodes. This can be seen in the reduction in the size of the reserve and debt proof datasets. here.
This move demonstrates our commitment to an efficient Bitcoin network and low fees while maintaining wallet security and full transparency.
What should users do?
This is a reminder to users who need to update their external systems with the refreshed deposit address. Please ensure that all Bitcoin deposits are made to your current address to avoid delays or administration fees in receiving funds, as our real-time system will remove your old address (starting with 3BMEX or bc1qmex).
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