ArcPay: a Trustless Validium

Does ArcPay address the defragmentation issue?

Say Alice owns [1,10] and Bob owns [11,20] and Charlie owns [21,25].

Alice sends 5 ETH to Charlie, who now owns [1,5] and [21,25] with Alice owning [6,10].

Now Charlie wants to send 7 ETH to Bob, and now has to spend [1,5] and [21,23] which means 2 transfers instead of one, and this problem gets worse as the amount of users scale up.

There’s a few ways to mitigate this problem, but was curious if ArcPay addresses this at all: