Scaling Lightning With Simple Covenants

In the email, John acknowledges that there is an issue regarding settling the channel on-chain and resolving HTLCS on-chain, which affects both processes. The paper mentioned in the email proposes using "short-cut" transactions as a solution to address the cost of enforcing HTLCs on-chain. It suggests that a similar approach could potentially be applied to the channel itself, although this would be more complex due to the value included in the channel and the possibility of having channels with different capacities in a single timeout-tree. John expresses his agreement with this idea.