RaspiBit asked about 3 years ago

What does #zerobasefee mean?

I've seen the hashtag #zerobasefee. What does it mean and why people follow it?

4 Comments

LN+ Admin wrote about 3 years ago

Channels have two types of fees:

Base fee, which is a fixed fee on every routed transaction
Fee rate, which is a percentage fee on every routed transaction

There is newly implemented technology called MPP (multi-path payments), which allows an LN transaction to be sent through multiple channels. Potentially dozens of channels. There is a whole thread Twitter thread here about the benefits. If we have a base fee on nodes, MPP is going to be too expensive, because you have to pay the base fee to every path individually. Also, discovery of optimal channels is harder.

The #ZeroBaseSee campaign encourages node operators charge using the fee rate and set their base fees to zero. Btw, #DropTheBase would be a great name too.

bfected wrote about 3 years ago

For more in-depth information, also check out this this page by lightning dev Rene Pickhardt and the paper about his novel path finding algorithm.
Looks like it could improve the success rate of large payments significantly.

BTCRich3 wrote about 3 years ago

Great idea. You can edit this after the channel is setup. I used ride the lightning app to do this.

🌹🌹🌹 wrote about 3 years ago

You can set a default parameter in lnd.conf to make sure you don't have to deal with it later on:

; The base fee in millisatoshi we will charge for forwarding payments on our channels.
bitcoin.basefee=0

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