This has been possible in Phoenix wallet for some time. Hopefully we'll see it as the standard.

Clean post. Custom close output saves a hop and fee.

06bc1a977d

Mind

Blown

On one level, duh, I should have realized this was possible. On another level, I lacked the creativity to imagine it.

Very very good to know! Thanks for sharing.

jasonb

How to Choose Where Your Channel Closing Funds Land

Most Lightning operators close a channel the same way. You run 

, wait for the transaction to confirm, and your share lands in a fresh address of your own node wallet. If the money was meant for somewhere else, you then send it again. That second transaction costs an on chain fee, and it adds one more step where a mistake can happen.

There is a shorter path. In a cooperative close, you decide which address receives your share, and it does not have to belong to the node you are closing from.

In a cooperative close, each side declares the address where it wants its own balance paid out. Both declarations end up in the same closing transaction, with one output per party.

If you say nothing, LND derives a new address from its internal wallet and uses that. This is sensible, because the funds end up in a wallet the node controls and can spend right away. It is also the reason so many people close to their own node and then forward the coins by hand.

lightning

> **How to Choose Where Your Channel Closing Funds Land**
>
> ## Standard closing
>
> Most Lightning operators close a channel the same way. You run `closechannel`, wait for the transaction to confirm, and your share lands in a fresh address of your own node wallet. If the money was meant for somewhere else, you then send it again. That second transaction costs an on chain fee, and it adds one more step where a mistake can happen.
>
> There is a shorter path. In a cooperative close, you decide which address receives your share, and it does not have to belong to the node you are closing from.
>
> ## What LND does by default
>
> In a cooperative close, each side declares the address where it wants its own balance paid out. Both declarations end up in the same closing transaction, with one output per party.
>
> If you say nothing, LND derives a new address from its internal wallet and uses that. This is sensible, because the funds end up in a wallet the node controls and can spend right away. It is also the reason so many people close to their own node and then forward the coins by hand.
>
> [**...read more at massmux.org**](https://massmux.org/p/close-a-lightning-channel-straight)