BIP110 (RDTS) Transition Statement
Posted 1 day ago by LightningNetworkLiquidity
Lightning Network Liquidity (LNL) would like to publicly announce our position regarding the recently released BIP110 (RDTS) User-Activated Soft Fork (UASF).
LNL recognizes the game-theoretical, asymmetric risk profile inherent in UASFs, specifically the upcoming BIP110 (RDTS) upgrade which appears to have a broad base of support amongst node operators.
LNL recognizes the game-theoretical, asymmetric risk profile inherent in UASFs, specifically the upcoming BIP110 (RDTS) upgrade which appears to have a broad base of support amongst node operators.
Following our technical assessment, LNL concludes that the BIP110-compliant chain is likely to emerge as the dominant chain post-activation. To minimize network instability and promote a secure transition, LNL has proactively migrated its infrastructure to the BIP110-compatible version of Bitcoin Knots.
During the transitional activation window, LNL will implement rigorous risk-mitigation protocols to protect channel liquidity and prevent financial loss resulting from potential chain divergence.
We remain committed to the security of our peers and the Lightning Network. If you have any questions or concerns regarding our transition plan, please contact us at admin@lightningnetworkliquidity.com.
**UPDATE - CLARIFICATION OF INTENT **
This statement is not intended to indicate our support or approval (or lack thereof) for BIP110.
**UPDATE - CLARIFICATION OF INTENT **
This statement is not intended to indicate our support or approval (or lack thereof) for BIP110.
The statement is only intended to indicate our understanding that the risk profile is asymetric towards a successful UASF rather than an unccessful one and hence early signaling is benificial to encourage network stability.
**UPDATE - ADDITIONAL INFO**
We want to elaborate on the justification for our stance which is based purelly on the asymmetric risk profile created by a UASF.
We want to elaborate on the justification for our stance which is based purelly on the asymmetric risk profile created by a UASF.
Even with 30% node support, the game theory creates strong pressure toward a successful UASF rather than an unccessful one:
- The Miner’s Risk: Miners need liquid block rewards to cover operational costs. If 30% of the economy rejects their blocks, legacy rewards lose market depth. Miners don't need to support the change; they just need to fear that mining the "old" chain will result in coins the economy won't accept.
- The Incentive to Defect: This creates a "Prisoner’s Dilemma." Miners are incentivized to defect to the UASF chain early—not just to ensure their blocks are maximally accepted, but to capture rewards on a chain that initially has lower hash competition.
As a routing node, we aren't "voting"; we are positioning ourselves where the economic gravity is strongest to protect the liquidity of our beneficiaries.
1 Comment
Edelweiss🏔️ wrote 1 day ago
Yes it should be obvious by now that Bitcoin Core has been at war with Bitcoin for some time.
BIP-110 RDTS plugs the holes that they have been maintaining and widening
Good choice to support a clean Bitcoin chain
BIP-110 RDTS plugs the holes that they have been maintaining and widening
Good choice to support a clean Bitcoin chain
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