lightning-dev

Directionality of the transaction fees

Directionality of the transaction fees

Original Postby Rusty Russell

Posted on: December 12, 2017 01:25 UTC

In a discussion about Lightning Network fees, Rusty Russell explains that fees are charged on entry to the channel and are paid by the party initiating the transaction.

While it would be ideal for both sender and recipient to set their own fees, forwarding nodes can charge appropriate fees for both parties. In response to a question about negative fees, Russell notes that this would be a strange idea and complicate routing. The channel initiator pays all onchain fees, which is simple but potentially gamable. Although there are more important factors than Lightning Network fees such as opening and closing fees, current alternatives are complex and potentially gamable, so simplicity was prioritized.