Spending Limit

Multisignature Wallets With A Spending Limit

spending limit

Some multisig wallets enable their users to set spending limit. This ensures that funds can be spend easily and fast, while the security of the multisig setup remains robust.

Spending limits can either be used to make daily payments easier, or to give someone else permission to make payments on your behave within certain limits.

How do spending limits in a multisig wallet work?

use with multisig

Spending limits can be set in a multisig wallet by choosing an amount and a time frame. For transactions that are within this amount and time, less signers are required to authorise a transaction than it would normally be as set by the chosen quorum (?). For example: If the quorum is set as a 3-of-5 and the spending limit is $500,- per month, the user can spend $500,- a month by signing with just two keys instead of three.

If three keys in his quorum are hardware wallets stored in a location and the other two keys are a mobile phone key and a Tapsigner, small amounts can be spend easily by just tapping the phone. Obviously, the risk for this $500,- is slightly bigger, but the security of the main holdings remains optimal. This can be extremely useful to increase the ease of regular spending, or to give someone else limited access to your money.

Multisig Wallets That Support A Spending Limit

multisig wallets that support a spending limit

If you want to use this amazing feature, you need a multisig wallet that supports it. Some second generation wallets are implementing advanced features through miniscript, and this feature is often added in combination with timelocks and decaying multisig. Below a list with multisig wallets that support spending limits:

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