Removing channel reserve for mobile wallet users

Posted by Bastien TEINTURIER

Oct 18, 2023/14:47 UTC

In the email, Bastien is discussing the current state of wallets in Phoenix and proposing a change to the reserve requirements for Lightning Service Providers (LSPs). He mentions that currently, wallet users are allowed to have no reserve, but LSPs must meet the usual reserve requirements.Bastien's goal is to argue that the requirement for LSPs to have a reserve should also be removed without compromising trust. He believes that the channel reserve is necessary between routing nodes because they do not have a "service provider" relationship, which creates more incentive to cheat. However, he argues for removing the reserve requirement between wallet users and their LSPs, as LSPs are not anonymous nodes and care about their reputation.The email ends with a question from Bastien, asking Tony to clarify what he means by the "dust reserve limit."

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