Length limit on the Standard/Contract principal

[FriendsFerdinand]

The purpose of this thread is to document the discussion on the length limit of a standard/contract principal using OP_RETURN.

When depositing BTC using OP_RETURN, there is a maximum length size (by consensus) of 63 bytes for the Stacks recipient address. In the case of a contract principal, the contract length can only be at most 41 bytes (1-byte address type prefix + 20-byte address hash + 1-byte length + contract name).

In the case of OP_DROP, we won't hit the maximum length of a contract, that is, 128-bytes. Should we enforce a 41-byte address on both deposit modes?

As a bonus, in OP_DROP, we don't need 128-bytes in the witness script (only store a hash160 of 20-bytes), potentially saving on Bitcoin fees (but adding a cost to the Reveal Stacks contract call).