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97 sats \ 3 replies \ @DarthCoin OP 19 Feb \ parent \ on: LSP Inbound channels fees lightning
For the moment only Olympus have the option to renew an existing channel without closing and re-opening, just paying an extra fee.
The the rest, is quite uncertain what happen after the 1 year lease, but consider it that will be closed any time by their side.
if the channel is economically productive there is little incentive for the lsp to close it. if the channel is dormant then capital allocation is very poor if you don't close the channels after the duration for which you were paid for (1y in this case). Of course there is also the opportunity cost of closing the channel - will the onchain fees be higher than potential revenue from capital reallocation
another thing to consider is that users go away so you don't really want to keep the channels who are not doing any traffic since its also a high possibility that the user stopped using the wallet/lost keys/forgot about it. but this goes back to the efficiency of capital allocation from before.
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