No, I'm aware of the dust limit. 5400sats wasn't much money back then, and they could just take it out of the bet up front making it revenue neutral. That's not why Satoshi Dice died.
am I also wrong in saying Gregory Maxwell created a dust limit patch explicitly to avoid relaying satoshi dice transactions? That's how it looks to me from reading that old bitcoin talk thread. If that was the purpose of Greg's dust limit, and a dust limit became the default policy two months later, it seems unlikely that those two things happened independently. Am I missing something?
reply
What I think you're missing is that the dust limit doesn't stop a service like Satoshi Dice from existing. It just forces the service to operate in a less harmful way, by ensuring that UTXOs crated by it can be profitably spent.
The timing is just coincidental.
reply