20 sats \ 3 replies \ @snufon OP 25 Jul \ parent \ on: How does Muun even make money? lightning
I can say that they make 0 money if you withdraw from them on L1 (I checked on the blockchain and my entire fee went to the miner). So I would assume that they only make money if you withdraw from them on L2 but they lose money on users like me.
So they only win when someone uses it send L2 payments. But since it's not a real Lightning wallet I feel like this would not be a good choice anyway: just use a real L2 wallet instead of paying high L1-like fees! So I don't see how their business model would work long-term...
For instance, they have acknowledged publicly that the use of submarine swaps was never a long-term strategy. But regarding the "real L2 wallet" part, which is true, they made other conscious trade-offs which I myself, as any other Muun user, consider appropriate, which is in regard to safety and flexibility, since it's a pleasure to freely come and go from L2 to L1, and fees are not always that high, and transactions are always instant. Will see how they adapt, but for now it's a really useful wallet as is
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Interesting, thanks! Yes I'm loving the wallet right now, which is normal since I'm literally being a parasite to them with my specific use case 😄
Maybe they could somehow combine the "real L2" missing part with the existing submarine swap features which are awesome. That could help them be sustainably profitable as I suspect Phoenix is right now
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I'm sure they are on it!
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