Lightning

Lightning Nodes using the Plenny DLSP module can generate income from token rewards in addition to sat income. Reduced capital cost, lower expenses, and higher income are achieved through increased volume provided via the additional liquidity of the Ethereum ecosystem.

The estimated income depends on the use case. Sample calculations show the following cost-benefit analysis:*

1. Use Case LN Channel Rewards:

If a Lightning Node logs 3.9M sat of outbound capacity for 250 days, the cost-benefit analysis looks as follows:

+5,636.78 PL2 LN Channel Rewards

• Baseline Reward for verifying Lightning Node (one-time) and for claiming channel rewards: 2 x 250 PL2 = 500 PL2.
• Claim Channel Rewards: 5,136.78 PL2.

-1,320.00 PL2 Expenditure (gas fee and other cost)

• Verify Lightning Node (one-time): 2 transactions with gas fee: USD 4.30and 1 Bitcoin on-chain transaction: USD 3.00 = USD 7.30 = 730 PL2.
• Claim Channel Rewards: 1 transaction with gas fee: USD 2.90and 1 Bitcoin on-chain transaction: USD 3.00 = USD 5.90 = 590 PL2.

Minimum Estimated Income after 250 days = +4,316.78 PL2

2. Use Case Capacity Market:

If a Liquidity Maker provides 3.9M sat of inbound capacity for 250 days to a Liquidity Taker, the cost-benefit analysis looks as follows:

+5,436.78 PL2 Royalties and Channel Rewards

• Fixed Royalty: 50 PL2.
• Customizable Royalty: X PL2 (this licensing fee is freely determined by the Liquidity Maker).
• LOC Channel Rewards: Baseline Reward of 250 PL2 + 5,136.78 PL2 = 5,386.78 PL2.

-661.25 PL2 Expenditure (gas fee and other cost)

• 1 transaction with gas fee: USD 3.60 and 1 Bitcoin on-chain transaction: USD 3.00 = USD 6.60 = 660 PL2.
• Maker Fee of Fixed Royalty Amount and Customizable Royalty Amount: 2.5% = 1.25 PL2 + X PL2 = 1.25 PL2.

Minimum Estimated Income after 250 days = +4,775.53 PL2

3. Use Case Decentralized Oracle Network (DON):

If a Lightning Oracle validates the opening and closing of a payment channel of 3.9M sat, the cost-benefit analysis looks as follows:

+4,800.00 PL2 Oracle Validator Rewards (OVR)

• OVR for the Consensus Winner: 2 validations: 2 x 2,400 PL2 = 4,800 PL2.

-1,641.00 PL2 Expenditure (gas fee and other cost)

• 2 transactions with gas fees for opening and closing of the channel: USD 16.41= 1,641 PL2.

Estimated Income per validation = +3,159.00 PL2

*The sample calculations are meant only as examples. Such calculations can vary widely depending on transaction fees, exchange rates (i.e. BTC, ETH, and PL2), and multiple DAO Governance parameters regarding reward levels, including the reserves held in the Treasury HODL. The following exchange rates and parameters used here are for illustrative purposes only: 1 PL2 = USD 0.01; 1 ETH = USD 2,300.00; TH = 250,000,000 PL2.