Removing channel reserve for mobile wallet users

Posted by Bastien TEINTURIER

Oct 18, 2023/14:47 UTC

The email discusses the topic of wallet reserves in Phoenix. The sender mentions that currently, Phoenix allows wallet users to have no reserve, but the LSP (Lightning Service Provider) is required to meet the usual reserve requirements. The purpose of the sender's post is to argue that the requirement for the LSP side should also be removed without compromising trust.

The sender believes that the channel reserve is useful between routing nodes because they do not have a "service provider" relationship and there is a higher incentive for them to attempt cheating. However, the sender argues for removing the reserve requirement between wallet users and their LSP, as LSPs are not anonymous nodes and care about their reputation.

The recipient of the email is asked to clarify what is meant by the term "dust reserve limit."

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