Below is a refined technical document that clarifies the role of the temporary key and how the emergency/disaster UTXO is effectively unspendable except via the pre-signed “recovery transaction.” In particular, this version emphasizes that there is no extra script-based lock on the disaster UTXO; rather, it is simply sent to the temporary key Key_T, and the only valid signature to spend it is the one created (and then partially shared) by the custodian before Key_T was destroyed. 1. Overview 1. Temporary Key (Key_T): • A fresh key pair generated by the custodian during setup. • Used only to create partial signatures for the recovery transaction and the “disaster signal UTXO.” • Destroyed immediately after, preventing both the user and the custodian from using it for any other purpose. 2. User’s Final Taproot: • The user’s funds reside in a Taproot output with two internal paths: 1. Normal Path:  for daily spending. 2. Recovery Path:  activated only after the “disaster signal.” 3. Disaster Signal UTXO (Locked to Key_T): • A small output paying to Key_T. • No fancy script lock—just a standard single-key output controlled by Key_T. • Critically, the custodian has already produced a partial signature that only works if this UTXO is spent in the final “recovery transaction.” 4. Recovery Transaction (Partially Signed): • Consumes two inputs: 1. The user’s final Taproot via . 2. The disaster signal UTXO (locked to Key_T). • Key_T’s partial signatures are included at setup. • Once Key_T is destroyed, there is no other valid way to spend either input with Key_T—except using the already-produced partial signatures. 5. Disaster Activation: • When the custodian broadcasts the “disaster signal transaction,” it finally places the Key_T-locked UTXO on-chain. • The user then finalizes the “recovery transaction” by adding their signature, spending both the final Taproot and the newly created disaster UTXO together, and moving funds to safety. 2. Step-by-Step Design 2.1. Custodian Generates Temporary Key_T 1. Generate Key_T • Create an ephemeral key pair . • Keep  private; do not share it with the user. 2. Embed  in the User’s Taproot • The user’s Taproot includes a Recovery Path that says “” can spend it. 2.2. Disaster Signal (Pre-Signed) Transaction 1. Construct an Unbroadcast TX • The custodian prepares a minimal transaction that pays a dust-level output to . • In normal Bitcoin usage, this is just a standard P2TR or P2PKH output for Key_T—no custom script needed. 2. No Extra Script Lock • There is no special script logic preventing spending. • The only reason this UTXO can’t be abused is that Key_T is destroyed after setup, so no one can re-sign new transactions with it. 3. Kept Off-Chain • This “disaster signal TX” is not broadcast yet. • It will be published on-chain only in an actual emergency. 2.3. Recovery Transaction (Partially Signed with Key_T) 1. Two Inputs 1. Final Taproot: Spent by . 2. Disaster UTXO: Locked to . 2. Custodian Signs with Key_T • While  still exists, the custodian signs both inputs to create partial signatures. • The user’s final Taproot input is partially signed by Key_T (the user must add their signature later). • The disaster UTXO input is also partially signed by Key_T. • The user cannot yet finalize or broadcast the recovery transaction because: • The user still needs to add their own signature for the Taproot input. • The disaster UTXO does not exist on-chain until the custodian broadcasts the signal TX. 3. No Lock • There is no script-level lock on the disaster UTXO. • The practical lock is that Key_T’s private key no longer exists after setup—so this partial signature is the only signature that can ever spend that UTXO. 4. Custodian Destroys  • After generating the partial signatures, the custodian securely erases the private key. • Result: No one can produce any new transaction with Key_T’s signature in the future. 2.4. Normal Operation • The user’s final Taproot is spent day-to-day using the Normal Path . • The “Recovery Path” is inert because: 1. The user doesn’t have Key_T. 2. The “disaster UTXO” is not even on-chain yet (so the partial signature for it is meaningless at this point). 3. Disaster Scenario 1. Custodian Broadcasts “Signal TX” • This creates the Key_T-locked UTXO on-chain. • Suddenly, the partial signature for that UTXO (created at setup) becomes usable. 2. User Detects the Disaster UTXO • The user sees that the “signal TX” confirmed on-chain. • The user retrieves the pre-signed “recovery transaction” file from storage. 3. User Adds Their Signature • The user signs the Taproot input with Key_User in the  path. • Key_T’s partial signature (from setup) covers the other half of that input as well as the disaster input. 4. Broadcast Recovery Transaction • Now fully signed, it spends: 1. The user’s final Taproot (through the recovery path). 2. The disaster UTXO paying to . • Outputs go to the user’s safe address (e.g., a new single-sig under user control). 5. User Recovers Funds • This does not require the custodian’s cooperation at the time of disaster. • The user’s funds are effectively rescued into their own address. 4. Security & Abuse Prevention 1. No Key_T After Setup • Because the custodian destroyed Key_T, they cannot unilaterally spend the user’s Taproot. • Nor can they re-spend the disaster UTXO in any other transaction. 2. User Can’t Trigger Recovery Prematurely • The user cannot finalize the recovery transaction until the custodian broadcasts the signal. • Attempting to do so earlier would fail because the second input (disaster UTXO) does not yet exist on-chain. 3. On-Chain Gating • The existence of the Key_T-locked UTXO on-chain is the “signal.” • The partial signatures produced during setup are the only valid signatures for spending it (since Key_T is gone). 5. Implementation Notes 1. Minimal Output for Disaster UTXO • Typically must meet dust limits (e.g., ~330 sats for a P2TR) to be standard in Bitcoin mempool/policy. 2. SIGHASH Types • Usually SIGHASH_ALL | ANYONECANPAY or a similar flexible combination. • Ensures you can add the second input (the newly created UTXO) without invalidating Key_T’s signature. 3. Storage • The user securely stores the partially signed recovery transaction offline. • The custodian stores the unbroadcast “disaster signal TX.” 4. Privacy • The final Taproot can look like a normal single-key Taproot on-chain. The second internal path is not revealed unless triggered. 6. Conclusion This flow ensures: • No script-based ‘lock’ on the Key_T UTXO. It’s a plain spend-to-Key_T output. • No off-chain policy or key revelation at disaster time—only the pre-signed transaction is needed. • No ongoing risk from the temporary key, since  is destroyed. • Unilateral user recovery as soon as the custodian’s signal UTXO is published on-chain. By relying on partial signatures from a short-lived Key_T, we effectively create a one-time “spend path” that only works when the “disaster UTXO” appears. This approach does not require any complex covenant scripts; it’s simply a clever combination of Taproot paths, partial signatures, and ephemeral key disposal.