Author: Benjamin Mord 2018-01-16 20:32:09
Published on: 2018-01-16T20:32:09+00:00
In a recent email thread, Benjamin Mord proposed the idea of allowing negative fees in the Lightning Network protocol to incentivize unwinding in scenarios where nodes consider it to be cheaper than on-chain rebalancing. This idea was previously brought up by Edward Marynarz, and in the original implementation of the protocol, negative fees were allowed. However, according to Rusty Russell, this turned out to be a "very strange idea" that complicated routing. The difficulty with the routing protocol has been documented in a previous email thread linked in William Casarin's response to Mord. While Mord suggests that the decision to treat negative fees as 0 should be left up to individual routing implementations, he believes that the protocol itself should support negative fees.
Updated on: 2023-05-24T18:35:23.730151+00:00