10 sats \ 6 replies \ @TheGoon 17 Oct 2023 \ on: Help me Understand Phoenix Fee Concept bitcoin
Isn't the fee more like 500ppm?
Have you thought about how much capital you would need to achieve the same connectivity on your “Raspi”?
It's something like 50 channels with a capacity of at least 1 million each, the bigger the better tbh.
Now this hotwallet runs on a gimpy $250 hardware.(add that to your ppm)
Channel.db sucks, watchtowers suck and you need to run a yolo stack of “liquidity management” software.
Connect to your node via Tailscale/Zerotier because Tor also sucks.
Have you considered all of this?
There are some fee cap options in Phoenix that are far from perfect, but for now I'm okay with it.
Receiving fee = mining fee (when inbound liq is insufficient)
Sending fee = 0.4% + 4 sat
There is currently a silly rouding error in the iOS interface which shows 0.5% but it's really 0.4%
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And Phoenix has never failed to send or receive for me. So you get great liquidity management but do have to pay a bit more.
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I ran my own routing node in the past so yeah I have considered that I do not complain about the fees in general. But channel management is shit if I have to pay like 2500 sats for every 1000 sats I want to receive.
You talking about ppm, I am talking about phoenix wanting to do an onchain tx for every LN I receive. What is the purpose of LN then if I am forced to do a onchain tx everytime
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I also ran one of the top 100(circle-jerk ranking), profitable routing nodes for years, which I was only recently happy to shut down.
My point is that LN is not as cheap as you might think. (e.g. ECC RAM, Raid1 and so on.)
There are settings to cap max fee % and absolute LN fee in Phoenix.
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Sure I acknowledge your point and I do not say that fee are unreasonable on phoenix. Happy to pay them for the service they provide. I guess you are missing my point: There is something wrong if it mandates an onchain tx for every LN one does receives.
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Yes you are right and it needs to be fixed.
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