Group outputs by address, selecting all or none, instead of selecting on a per-output basis. Privacy is improved as an address is only used once (unless someone sends to it after spending from it), but may result in slightly higher fees as suboptimal coin selection may result due to the added limitation (default: 0)
I don’t understand. Isn’t address reuse already avoided, if receiving/change address is used only once? Does this option mean that each receiving address would be tracked by the wallet internally, so that spending from multiple “sources” is generally avoided? Aren’t there still some scenarios that “spending from multiple sources” is still unavoidable? How could this improve privacy? Won’t this create a tracable “chain” of transactions?