Post
Topic
Board Development & Technical Discussion
Re: The Lightning Network FAQ
by
PrimeNumber7
on 27/06/2020, 19:27:49 UTC
If the majority of the network ends up charging as much as LNbig.com or even more then the LN will be mostly known for instant and more anonymous small transactions. Do you think that a $0.12 fee for a $30 transaction being way too high is an over-exaggeration? Consider that there could be longer routes consisting of nodes with similar fee settings. Still, I do agree that nodes should earn more than they do by default, because they might need to rebalance their channels at some point. As far as I remember, someone proposed to increase the default fee settings (the basefee from 1 sat to 5 sat and the feerate from 1 to 500).
I would expect the LN fees (as set by the market) to be a function of among other things, the amount of traffic on the LN network.

LN nodes have fixed operating costs to keep the node running, and have the costs associated with opening, and closing their channels. The incremental operating costs associated with processing two LN transactions of approximately equal value, one in each direction of a channel would be very low. As transaction volume increases, node operators can lower their fees to operate on a profitable basis.