Transaction fees for Lightning contracts have been decreased

Hodl Hodl
Hodl Hodl
Jul 9 · 2 min read

We would like to shed light on a recent update, and inform our customers that the Hodl Hodl platform can now be used for micro P2P contracts.

Let’s get everything in order.

About

We always highlight that Lightning contracts are over two times cheaper, compared to on-chain, in terms of the transaction fee that we deduct from the deposit, when buyer receives bitcoins.

However, this wasn’t enough, as we understood, for micro contracts where the deposit amount is close to 0.0001 BTC, since the transaction fee we have set was exactly 0.0001 BTC.

We have already resolved this issue and decreased the transaction fee for Lightning contracts.

Why we didn’t do this earlier

When we introduced Lightning contracts, we set a default transaction fee of 10000 satoshi, which buyer pays when receiving bitcoins from our wallet.

We thought this would eliminate any possible issues with stuck transactions. By resolving this issue, we also unfortunately eliminated the possibility of micro contracts for amounts close to 0.0001 (the minimum contract amount that we allow for creating contracts using the Lightning Network).

Over time, we realized that all transactions from our wallet took several times less in fees than we expected, therefore we decided to change this.

From now on,

Every buyer at Hodl Hodl, that receives bitcoins from our wallet, will pay a transaction fee of 50 satoshi (0.0000005 BTC), instead of 10000 satoshi (0.0001 BTC).

This value is fixed, and in fact, the transaction fee can be even less than 50 satoshi. In this case, Hodl Hodl keeps the difference itself, unless it’s possible to transfer the difference to the buyer & the buyer requests this.

We welcome

everyone to trade at Hodl Hodl using the Lightning Network, and to try out our implementation without exchanging large amounts of Bitcoin.

Reach us

Hodl!

Hodl Hodl

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Hodl Hodl

P2P cryptocurrency exchange that doesn’t hold funds