Author: Rusty Russell 2019-10-14 01:32:23
Published on: 2019-10-14T01:32:23+00:00
In a Lightning-dev mailing list, Rusty Russell proposed to increase the default fee rate for Lightning Network. However, Olaoluwa Osuntokun suggested that this change may be misguided and could promote the notion that developers decide on fees in Lightning. Osuntokun argued that there are flaws in the reasoning behind the proposal, such as defaults indicating lower reliability, and routing being tarpitted when trying them all. Moreover, he pointed out that there is no meaningful market signal in fees since you cannot drop much below 1ppm. He also suggested that raising defaults would not address the issue of the majority of participants not yet thinking about their breakeven costs due to a lack of education. Instead, he recommended educating prospective routing node operators on best practices, providing analysis tools they can use to make channel management and liquidity allocation decisions, and leaving it up to the market participants to converge on steady-state economically rational fees.
Updated on: 2023-06-02T20:56:59.013101+00:00