Nostr Web Client

Replying to

SunshineAndRainbows

WTF.

Phoenix takes 15k sats every time there’s a transfer?

WTF???

#asknostr

Piriya ⚡🟧 2y ago

Phoenix takes 15k (usually aroun 3k at lower fees) to open and/or enlarge channel.

So if say you have 2m sats to put in and you send in 1 m

Phoenix will open a channel for you with maybe around 1.2 m capacity, meaning you can receive 200k more.

Now if you want to transfer in the other 1m you will not have enough inbound capacity so Phoenix will need to do another on chain tx to enlarge your channel which is another 15k at the moment.

But now you'll have a channel with around 2.4m capacity which is yours, forever so if you sent the sats back out you will have more inbound liquidity to receive more.

The same thing applies if you run your own lightning node and manage your own channels. Custodial solutions take care of all these complications behind the scene.

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Discussion

SunshineAndRainbows 2y ago

Thank you!

And now that I have a channel open can I receive fees?

Piriya ⚡🟧 2y ago

No, your channel are open from you to phoenix, it's not routed anywhere else so I doubt any transaction will go through you.

But the channel is yours to use, this alone is already something I don't expect most people to be able to afford in the future, having one's own channel is going to be a luxury at this rate.

If you wanted to receive fees you need to run your own lightning node and open multiple channels to many other nodes. However, running a routing node for transaction fees is not an easy task and requires a lot of patience, experience, and time. Figuring out how to manage your liquidity and fee rates is an art, it's like managing liquidity between banks.