Removing the Dust Limit



Summary:

In a recent email exchange on the bitcoin-dev mailing list, Antoine Riard raised concerns about the trim-to-dust evaluation not correctly matching the lifetime of the HTLC. In response, Rusty Russell explained that the evaluation should be determined each time the channel is updated and that dust limits only provide a fixed size lower limit. He also noted that if someone is trying to save every satoshi, dust limits aren't their problem, and if they're not trying to save every satoshi, they can simply add 305 sats to their output to avoid the dust limit. Russell also addressed the issue of an uneconomic output, explaining that it becomes irrational before it becomes uneconomic. For example, a 10,000 sat HTLC might be worth committing to at 1sat/vb fee rates but may not be worthwhile at 75sat/vb. He suggests that at these amounts, one is already trusting their LN counterparty, and if they are trying to save every satoshi, they should consider mutual/cooperative close to avoid high fees.


Updated on: 2023-05-23T15:27:10.276864+00:00