What can Kaspa fan-out covenants be used for?

Fan-out covenants in Kaspa's Silverscript are useful for distributing funds to multiple recipients, splitting token supply, or forking a pipeline into parallel branches. A covenant is an on-chain rule that governs how a coin output may be spent; with fan-out, one input can satisfy many such rules at once, each output independently checked by its own validity condition defined in the covenant script. For a beginner, the practical takeaway is that complex multi-party payment logic — like splitting a payment between several addresses — can be enforced automatically by the Kaspa protocol rather than relying on a trusted third party to do the splitting.

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