Quote from: juvo_3 on February 19, 2018, 06:30:43 AM

What do you think about the hash rate supply once the block reward becomes small and transaction fees dominant? I don't see an incentive for end users (tx requester) to place a higher fee if the transaction volume was to drop (e.g. when transactions are executed on the LNN leaving less volume). At this point the miner would need to feasibly supply hashing to the network, but there is no feedback for end-users to increase fees to maintain the security of the network.

or have i missed something?

Given that the block reward would take quite sometime to reach 0, the efficiency of the ASICs would likely increase quite substantially and the electrical prices would decrease. Transactions are still being transacted on chain, albeit only in the opening and closing of channels in the case of lightning network.
If the volume of Bitcoin transactions increases even more, then the mining would still likely be fairly profitable.

Quote from: juvo_3 on February 19, 2018, 06:30:43 AM

I agree, there is some influence that the miner has due to the process of them liquidating coins to run their operation, but the market price determination involves way more factors. What I am more concerned with is the behavior of the network once the coin supply starts to plateau and we have lightened the load of transaction volumes from the blockchain.

Bitcoin's blockchain will still likely remain as the integral part of the system for the rest of its life, as well as the miners. Lightning network helps with the micro transactions but ultimately, it would all still involve Blockchain. The transaction volume now is quite substantial, if Lightning network becomes a reality, then normal day-to-day transactions would be feasible and hence a higher overall transaction volume.