DynaFed: Reminder to Update Peg-in Addresses

Blockstream -

Note: this post is a reminder intended for Liquid members we have yet to contact directly, who may be doing peg-ins or have built systems that do peg-ins.

On January 25, 2023, at block 2197440, the Dynamic Federations transition to replace a watchman key occurred successfully. We now have a full complement of 15 watchmen with peg-outs and sweeps working as designed.

Important — peg-in addresses generated before the January 25 transition will no longer be claimable after February 7, 2023 (the end of this current DynaFed epoch) because the fedpegscript for the network has changed. Funds sent to old peg-in addresses will be lost as Elements will not accept the claim transaction. This does not affect already claimed funds and only applies to new peg-ins.

The following guidelines should be followed when performing peg-ins:

  • The time between generating a peg-in address with getpeginaddress and claiming it with claimpegin should be kept as short as possible.
  • Peg-in addresses should not be reused because it represents a fixed point in a dynamic network. Although it can be reused within a short period, they do not represent a long-term view of the network. Funds sent to an expired peg-in address will be lost.

The Federation will honor addresses from the previous network for a limited period – until the end of the current DynaFed epoch, which will end on Tuesday, February 7, 2023.

If you have built a system that does peg-ins or are using peg-in addresses, please confirm that it is not caching or reusing old peg-in addresses in your code. We are happy to help guide you in this process. For those not doing peg-ins, everything has stayed the same.

Please let us know if you see any unexpected behavior or have further questions by joining the official Liquid Dev Telegram or emailing us at liquid-support@blockstream.com.

Thank you for your understanding and your continued support. We look forward to continuing to provide the community with technical and development support as we build Bitcoin's financial layer together.