Replying to Avatar Daniel

I thought this as well but again if it’s only 10k it’s not much of a risk to have to close in the first place, right? I’m still learning but I’ve noticed lots of connected nodes require locking up hundreds of thousands of sats. I just want to help the new nodes get connected.
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gandlaf21 7mo ago 💬 1

The thing is, a channel is actually just an UTXO. You don't want to create UTXOs that are of very low value, because depending on how high the onchain fees are, it might be economically unviable to move the funds in the future.

On chain fees are calculated by the amount of data that gets written to the blockchain, and not by the amount of the UTXO.

If you have a channel that is only 10k sats, you might pay 10-30% fees to close the channel later. If the channel is 100k, that would be 1-3%

. If it's 1M, it's 0.1-0.3%.

these numbers are nit exact, but i hope you get what i mean

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Daniel 7mo ago

I do now, thank you. I understand UTXOs so comparing it to a lightning channel makes perfect sense to me now.