This is essential because, even if the factory layer closes and channels within it are directly published on-chain, these channels can continue operating independently. The base node software will still monitor the blockchain for activity related to channels within factories, ensuring that any transition from a factory setting to a direct on-chain presence does not disrupt their functionality. However, there are scenarios where closing a factory might also close the hosted channels, such as specific edge cases like a SuperScalar instance timing out. In such instances, it's crucial for the factory plugin to communicate with the base node software to disregard the affected in-factory channel.

Further, the conversation touches upon a past proposal aimed at enhancing how nodes gossip about channels by linking gossip capabilities to proof of shared control over on-chain funds. This approach was considered as a means to overcome limitations imposed by the Bitcoin blockchain's UTXO set on the expansion of the publicly gossiped network. The rationale behind requiring channel announcements to reference an unspent transaction output (TXO) is rooted in this limitation. Although implementing changes to facilitate gossip for channels within factories is deemed out of scope for the current discussion, it underscores the need for foundational adjustments in gossip protocols before addressing the intricacies of factory-hosted channels.

Additionally, an alternative concept called "sidepools" is introduced, proposing a hybrid approach that combines direct on-chain N=2 mechanisms with off-chain N>2 mechanisms. This model aims to leverage the advantages of both setups, maintaining the simplicity and reliability of direct on-chain channels while enhancing liquidity management through more complex off-chain mechanisms. Sidepools could enable more efficient use of liquidity, potentially allowing for just-in-time rebalancing to optimize channel capacity utilization without necessitating changes to the existing gossip protocol. This concept exemplifies a strategic effort to balance the scalability and efficiency of channel management within the Lightning Network, leveraging the inherent strengths of the Bitcoin UTXO set to mitigate the challenges of network growth.