10 sats \ 2 replies \ @thelightningpulse OP 28 Dec 2023 \ parent \ on: SlushPool(Braiins) is dying. Here's how to save it bitcoin
You think everyone would switch to lightning payouts? I don't. Although I appreciate the bullishness.
Not sure where you are getting this 100bitcoin/day number from. In a few months we are going to be hovering around 5 bitcoin reward per block, probably. Maybe less, but let's just assume 5 (subsidy+fees). If Braiins crawls back up to 5% of network hashrate (which would be amazing considering theyre sitting at 1%ish now), that is on average 7 blocks per day. 7x5 = 35 bitcoin of reward on average per day. Now the question becomes what percent of those seeking payouts will want Lightning payouts? I think we can agree it will absolutely not be 100%.
But what if they only get up to let's say 2% of hashrate after going lightning (maybe steady climbing after that as difficulty continues to trend up), then they will get 3 blocks per day, roughly on average, that's just 15 bitcoin per day.
I get what you're saying.
- The client of the pool could set up a primary and secondary payout scheme. They could list several LN addresses and then if the pool payments fail, the pool could payout to maybe Liquid or on chain, assuming it is not dust and makes sense fee wise.
- Liquidity does matter. The pool could commit whatever it wants and slowly build out over time or batch open a bunch of channels. Batch opening is more cost effective but depends on their risk profile. There is lots of flexibility here.
- Agreed, but I think the cost of putting in LN payouts is low relative to the very likely gains.
I am going to bring this topic up in Ep.2 for sure. The client has two options and those options can fluctuate based on how much theyre getting paid but generally they have option 1: Custodial alby/zbd are probably top 2 remaining custodial services since WoS is gone in US, anyway.
2. Run own node. This can be done on Zeus since Zeus added an embedded node into their app and they give out a free LNaddress with each embedded node or they can run their own node on Voltage or at home.
If they run a node at home all they would need is one channel and this channel they should open with the pool directly and then either swap out or buy something to get their inbound. When the channel fills they can loop out or continue just buying stuff to get more inbound. Each client would have their own personal preference. The cost savings is determined by volume of events multiplied by on chain fee rate.
- lolwut
- so? the liquidity is used so it shouldnt matter
- little demand because people are just turning their S9s off because they don't think there is hope. This needs to be a marketing thing from their end to bring the plebs back.
A few assumptions you are getting wrong. First, I would say LN payouts should only be in a specific range, as route finding becomes more difficult the bigger the payment. This becomes less so with MPP and AMP but let's put that aside. As for the node itself, there is no limit to how many channels one could have, as well as no limit to the amount of bitcoin that can be allocated to a channel.
Further, the bigger the channels, the less likely you have to perform opens. To add to that, batch opens are easy you could open 50 channels with 1 TX. Also, to replenish the channels, you do not have to open more, you can loop in or use other onchain to lightning methods to replenish. Personally, I would advise opening channels to Loop to milk fees when liquidity gets drained to replenish channels. it's win win on that.
The routing fees earned by the node will actually incentivize running of the node financially as well as if the runners of the node decide to lease channels as well by automating magma or other liquidity leasing services. It is unfathomably cheaper to do LN payouts in the case of paying out those with 100TH/s or less.
Apparently the current network EH is more like 507 than 607, but that doesn't negate the point of the write up. :)
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