Post
Topic
Board Development & Technical Discussion
Merits 5 from 3 users
Re: The Lightning Network FAQ
by
ndalliard
on 28/09/2021, 07:07:19 UTC
⭐ Merited by Rath_ (2) ,BlackHatCoiner (2) ,ETFbitcoin (1)
I have a question about this:
How much money can you make on running a Lightning Network node?

Unless you have a lot of coins, your earnings won't be enough to cover both hardware and maintenance costs.
Why should you have a lot of coins deposited in your LN node? Aren't the users supposed to deposit and be responsible for their channel's capacity? Also, what prevents someone from allowing free transactions (not even for 1 sat per tx)? Aren't lightning clients choosing the node with the lowest fee rate?
the earnings from a lightning node are in general proportional to the amount you have locked into your lightning node. meaning: the more liquidity you provide in channels, the more you can possibly earn (there are other factors, but generally speaking). and because the fees are relatively low (on lightning), you need a lot of channels with a lot of liquidty to earn a "decent" amount of sats

the biggest cost (besides hardware/electricity or hosting costs) are the onchain fees to open and close channels and atm it is pretty hard to cover them with what you earn with routing fees. the exception is the mentioned "unless you have a lot of coins"

maybe others have other experiences, but these are mine atm running my node for some months now