pull down to refresh
46 sats \ 2 replies \ @petertodd 24 Feb 2023 \ parent \ on: Phoenix Wallet - any way to prevent creating new channels? bitcoin
Nope. The 3k fee represents their actual cost per channel. They also take another 1% of the amount of the channel to fairly pay for the cost of the capital they have to tie up.
Personally I think all the fees are totally fair. If anything, it's hard to make money on those fees, as you're trying up a lot of capital with little return if people don't use their wallets frequently.
Personally I think all the fees are totally fair.
Agreed. Only who doesn't run a LN node would say that Phoenix fees are high, because they do not know how much is the real cost to maintain a LN node liquidity.
The only thing that I find it weird / I don't have an explanation, is that they are not opening a bigger channel. At least a 40% more than what you deposit. I know that will be a bigger effort for them to put that liquidity, but could avoid too many open/close channels.
reply
The reason is pretty simple I think. They have to allocate fund for each new channel. They don't have unlimited bitcoin, so they cannot allocate 40% of each new channel. If they do that, their "LSP" will run out of bitcoin pretty fast I think, and no channel could be created.
reply