Sat Protection on the Bitcoin network is the use of coin selection by your Phantom wallet to protect your Bitcoin NFTs and tokens from being mistakenly spent on regular BTC send transactions and network fees.
Whenever you want to make in-app transactions such as sending BTC, Ordinals, or BRC20 tokens from one of your Phantom addresses, only UTXOs which are safe to spend are used. A UTXO is safe to send if both of the following are true:
- UTXO does not contain an inscription.
- UTXO does not contain a rare sat.
The max sendable amount on the send form excludes UTXOs that are not safe to send. This is why there may be differences between your Phantom wallet balance vs block explorer balance, or your balance on other Bitcoin and Ordinals wallets for an address because these might include sats that are not safe to send.
For the current Bitcoin BETA, dApps transactions are fully handled by MagicEden and Unisat when you interact with them to make transactions. These dApps ensure that sats used in transactions are safe to send. Phantom will also implement extra sat protections for dApps in the near future.