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5 votes
Accepted

Why was the base_fee for the routing fee calculation of the Lightning Network included?

It was added as a compromise against more complicated ideas, actually. Base plus percentage is a pretty standard fee structure, so I went with it. If I'd been more familiar with the finance world, it ...
Rusty Russell's user avatar
3 votes

What are the implications of min_htlc_size in "Pickhardt Payments" on the Lightning Network?

In theory, it isn't clear to me yet if finding a min-cost flow is any harder when there are minimum flows. In practice, it's not at all a problem as long as the min HTLC size is small. That's because ...
stefanwouldgo's user avatar
3 votes

Negative fees on Lightning network and fees on incoming liquidity

I am not sure if it is possible to give a satisfying / definite answer to your question. As far as I can tell lightning developers have been very cautious in the early days (and still are) with ...
Rene Pickhardt's user avatar
2 votes
Accepted

How much do Bitcoin Lightning Network Watchtowers make in fees to justify their 24/7 server uptime costs?

It is still very early in the evolution of the Lightning Network and I don't think anyone, watchtowers or even routing nodes, is making that much money at the time of writing. Talaia Labs is working ...
Michael Folkson's user avatar
2 votes
Accepted

Where are my lightning routing fees stored (lnd), when do they get payed out?

The routing fees are charged with successful forwardings. Let's say you received 11 sats on one channel and forward 10 on another you have earned 1 Satoshi. This satoshi increases the total balance of ...
Rene Pickhardt's user avatar
2 votes
Accepted

Transferring all funds from a custodial service over Lightning Network

I have observed the same behavior and I think a "send all" function should be possible to build but is just not implemented. It is a little bit tricky as the actual routing fees depend on ...
Rene Pickhardt's user avatar
2 votes

Alternative fee functions for the Lightning Network

I'm not familiar with any proposals to add new variables to the fee function. There have been discussions on HODL invoices which would (if enabled on the Lightning Network) require additional fees ...
Michael Folkson's user avatar
1 vote
Accepted

Do I get the fees defined on the incoming or outgoing channel when routing a payment?

2sat. The fee is always charged on the outgoing channel
Rene Pickhardt's user avatar
1 vote
Accepted

Are multipart payments more expensive than normal payments? (Lightning Network)

Both onchain fees and Lightning routing fees are subject to market forces i.e. supply and demand. A key difference between onchain fees and Lightning routing fees is that onchain fees are driven by ...
Michael Folkson's user avatar
1 vote
Accepted

What is the purpose of the Lightning Network base fee? Should it be set to zero?

This was discussed on a c-lightning developer call on January 10th 2022. AJ Towns also discussed it on the lightning-dev mailing list. The base fee was introduced back in 2016 after a very short ...
Michael Folkson's user avatar
1 vote

What speaks against dropping the percentage fee in lightning?

The lightning network is still young, so I don't think there is an absolute consensus amongst users on what the optimal fee policy is. That said, one consideration could be: When deciding your ...
chytrik's user avatar
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