Loading...

Fee Distribution By Channel size

'Channel end' distribution is plotted against Fee buckets. A channel has two ends, one end is managed by one node, and the second end is managed by the peer node. Both end of the channel has different behaviors, so for analysis on fee, it makes sense to look at the channel end, rather than the Channels.

Key Insight:

  • 40% of channel end have zero base fee
  • Only 10% of channel have zero fee rate
  • Note that fee is a way for nodes to manage liquidity. When a node operator see it does not have enough liquidity in a specifc channel, she increase the fee to save the liquidity
Fee Distribution By Channel size