As someone who has thought a lot about VCS design [1] [2], the chunking approach is the wrong one and will still waste space.
[1]: https://gavinhoward.com/uploads/designs/yore.md
[2]: My WIP VCS has been named Yore for at least two years; I did not copy Lore's name.
This is a very long document that says nothing about chunking at first skim. If chunking is actually wrong, then just explain why, here. Wasting space is not actually a problem if it’s optimized for other purposes instead.