The issue I have with covenant proposals is that I don’t understand if they can work for small everyday amounts in an environment with rising fees. 

For example, if it costs $10 in fees to make a bitcoin transaction, can I get access to $5 in a shared covenant UTXO?

Covenants don’t seem to be a perfect solution because they don’t consider the cost of making the transaction. 

To me, the future looks like Fedimint, Liquid, etc where we have geographically distributed federations managing ecash, etc. 

Those federations would allow for massive transaction density.