This looks pretty good, but I'm confused by a few things.
Does this somehow impact privacy? If you can trace coins from when they came in via LN to when they are eventually redeemed, what impact is that? (or did I misunderstand).
Secondly, from what I understand Cashu (ecash) uses a power-of-2 scheme for "notes". So if you have 14 sats, you really have an 8 note + 4 note + 2 note. So what happens now? Do all have same tracking signature? If I forward the 8 note to Person B and they then pay someone else 1, (so that 8 note is broken into a 4 + 2 + 1 + 1, and the 1 is sent to Person C). What happens?
This looks pretty good, but I'm confused by a few things.