Author: ZmnSCPxj 2019-10-11 03:15:50
Published on: 2019-10-11T03:15:50+00:00
A proposal has been made to change default lightning network fees on new channels from 1000 msat + 1 ppm to 5000 msat + 500 ppm. The current fees have two problems, firstly low fees are seen as a negative signal and indicate lower reliability, and secondly, there is no meaningful market signal in fees because they can't be dropped much below 1 ppm. Comparing the fees charged by lightningpowerusers.com, which charges (10,000 msat + 5000 ppm) and seems to have significant usage, it's clear there is market tolerance for higher fees. Changing the defaults should move the noise floor up over time. The proposed increase to 500 ppm is still 1% at 20 hops, so minimally centralizing. Rusty suggests the base of 5000 msat is for less quantifiable reasons. A table showing the before and after amounts for various payment sizes in USD is included in the proposal.
Updated on: 2023-06-02T20:55:59.339877+00:00