Payment rewards, you invented payment rewards. No one cares.

Have you ever heard a merchant say "gee, I really really wish I could be using Lightning, but I just can't figure out how to motivate my customers to use it, and I don't know what a 'price' is".

As another person mentioned, who is "we"?

When people want something, they will figure it out. At the end of the day, people have all sorts of things they are thinking about and 1-3% fees, though obnoxious, are usually not the top of mind concern, and it will not be a major driver of adoption, especially if you are talking consumer payments.

Not only is it dumb today (not dumb, maybe, just you being a bit new, which is fine), but it will be even dumber in 12 months. The fiat payment rails will be getting much cheaper with RTP TCH and FedNow.

You are making the mistake I see many bitcoin investors making: comparing the state of fiat as recalled by the retail individual (2 years in the past) to the expected state of Lightning 2 years in the future. Doesn't get much dumber than that!

Also, running an e-commerce store (https://getchroma.co, check it out), there are few people who went bitcoin even when we had a 16.15% discount.