The methodology, inspired by the hodlboard proof of concept, necessitates participants in a round to demonstrate ownership of a UTXO (Unspent Transaction Output) exceeding a specified amount of satoshis. This verification process can be instituted either by the creator of the pool or through the nostr relay that facilitates the pool's operation. Incorporating such a requirement, especially on platforms beyond one-time payment schemes, promises to significantly bolster the defense against Denial of Service (DoS) and Sybil threats across various applications.

Furthermore, this strategy presents an intriguing possibility for its application within pathcoin, as suggested by the potential replacement of fidelity bonds with autct. Such a shift not only simplifies the concept of self-custodial eCash but also aligns seamlessly with the broader vision if covenants are eventually integrated into the Bitcoin protocol. This advancement stands to simplify the landscape of digital currency, making it more secure and user-friendly, particularly in the context of ensuring ownership and authenticity within decentralized systems.