Author: Matt Corallo 2021-08-16 00:04:52
Published on: 2021-08-16T00:04:52+00:00
The lightning community has been discussing setting the BOLT#7 fee_base_msat value to zero. This change would simplify the routing algorithm and make it easier to optimize for fees. However, it would also remove the fixed minimum fee and could potentially lead to node operators being uncompensated for their costs. There are several possible solutions to this issue, including mapping the base fee to other flow-based-routing-compatible numbers, accepting smaller payments despite the HTLC minimum setting, and setting a minimum payment size that gradually increases as the channel becomes overloaded.Furthermore, there is a need to address the issue of charging for HTLC slot usage in case of DoS attacks while ensuring that routing algorithms can handle the new costing. While some argue that fixed costs for forwarding an HTLC are very small, others stress that the opportunity cost of having HTLC slots or Bitcoin locked up until the HTLC succeeds/fails could be significant. The lightning community needs to explore these issues further and conduct more research before making any drastic changes to the system. In particular, they should investigate whether it's possible to emulate the results of current routing algorithms in a faster algorithm without the drawbacks of imposing a base fee. They should also analyze where the proposed algorithm may be most optimal in the HTLC-value channel liquidity ratio ranges. Overall, it is important to match fees to the costs involved and not throw away the existing fee structure after one great paper and limited further analysis.
Updated on: 2023-05-23T15:46:52.563641+00:00