Wallets • Estimated 45m

Degrading Multisig

custody.degrading-multisig

Degrading multisig uses a strong live-key spending policy first and a weaker backup path that becomes available after a timeout. It is a concrete custody pattern for balancing day-to-day resilience with emergency recovery options, and Taproot can implement it with cleaner onchain privacy.

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Curated resources (3)

• Bitcoin Optech Schnorr/Taproot Workshop (article) Module 3.1 demonstrates the degrading multisig wallet pattern with live and backup keys plus a timeout path.
• BIP 341: Taproot (article) Taproot structure that allows multiple spending paths to be committed and only the exercised path to be revealed.
• Mastering Bitcoin (book) Broad technical reference for multisig custody design, script paths, and recovery tradeoffs.

Direct prerequisites (2)

• Multisig Wallets
• Script Timelocks

Direct dependents (0)

• None

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