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Does this mean existing channels need to be closed and opened as taproot channels to reap the benefits?

I think it’s fine to take advantage of taproot privacy on a go forward basis to avoid the fee impact of closing channels all at once

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It means any new channels you create can be these simple taproot channels. It doesn't sound like you can upgrade existing channels.

Although I wonder if somehow you could splice into an upgrade when lnd has splicing (I don't know enough about splicing).

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That would make sense to me

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