What Is a UTXO

Understand how Unspent Transaction Outputs work and why they matter for RGB asset delivery in Utexo.

A UTXO (Unspent Transaction Output) is a discrete amount of Bitcoin received in a transaction that has not yet been spent. Bitcoin does not track balances like a bank account — instead, it tracks UTXOs. Your wallet’s balance is the sum of all UTXOs assigned to your addresses.

How UTXOs Work

Every Bitcoin transaction consumes one or more existing UTXOs as inputs and produces one or more new UTXOs as outputs. Once a UTXO is used as an input, it is fully consumed and marked as spent.

Example: If you hold a 0.01 BTC UTXO and send 0.004 BTC:

• The 0.01 BTC UTXO is consumed as input
• A new 0.004 BTC UTXO is created for the recipient
• A new 0.006 BTC UTXO is returned to you as change (remainder minus fees)

You cannot partially spend a UTXO — it must be consumed in full.

Why UTXOs Matter for RGB Assets

RGB is a client-side validation protocol that stores asset ownership proofs off-chain but anchors each asset transfer to a specific Bitcoin UTXO. This means:

• Every RGB asset transfer targets a specific UTXO in the recipient’s wallet
• Without a UTXO, an RGB asset cannot be delivered
• Tribe Wallet requires you to create UTXOs before generating an RGB invoice

If no UTXO is available when a swap completes, the RGB asset delivery will fail. Always create UTXOs before initiating or accepting a swap in Utexo.

Creating UTXOs in Tribe Wallet

Tribe Wallet provides a dedicated flow to create UTXOs from your BTC balance:

1. Go to Other assets (bottom navigation)
2. Tap Create UTXOs
3. Select the number of UTXOs to create
4. Confirm and broadcast the transaction

Each UTXO creation spends a small amount of BTC in transaction fees. Make sure your wallet has a funded Bitcoin address before creating UTXOs. See Get BTC for how to fund your wallet.

UTXO Count Recommendations

Scenario	Recommended UTXOs
First-time setup	5–10 UTXOs
Active trading	10–20 UTXOs
Receiving multiple assets	One UTXO per expected transfer

Having more UTXOs prepared ensures you can receive assets without delays.

Next Steps

• Get BTC - Fund your wallet and create UTXOs
• Create Wallet - Full wallet setup guide
• Swap BTC to RGB - Perform your first swap