ZmnSCPxj [ARCHIVE] on Nostr: 📅 Original date posted:2022-06-29 📝 Original message: Good morning aj, > On ...
📅 Original date posted:2022-06-29
📝 Original message:
Good morning aj,
> On Wed, Jun 29, 2022 at 12:38:17PM +0000, ZmnSCPxj wrote:
>
> > > > ### Inverting The Filter: Feerate Cards
> > > > Basically, a feerate card is a mapping between a probability-of-success range and a feerate.
> > > > * 00%->25%: -10ppm
> > > > * 26%->50%: 1ppm
> > > > * 51%->75%: 5ppm
> > > > * 76%->100%: 50ppm
> > > > The economic insight here is this:
> > > > * The payer wants to pay because it values a service / product more highly than the sats they are spending.
>
> > * If payment fails, then the payer incurs an opportunity cost, as it is unable to utilize the difference in subjective value between the service / product and the sats being spent.
>
>
> (If payment fails, the only opportunity cost they incur is that they
> can't use the funds that they locked up for the payment. The opportunity
> cost is usually considered to occur when the payment succeeds: at that
> point you've lost the ability to use those funds for any other purpose)
I think you misunderstand me completely.
The "payment fails" term here means that *all possible routes below the fee budget have failed*, i.e. a complete payment failure that will cause your `pay` command to error out with a frownie face.
In that case, the payer is unable to purchase the service or product.
The opportunity cost they lose is the lack of the service or product; they keep the value of the sats that did not get paid, but lose the value of the service or product they wanted to buy in the first place.
In that case, the payer loses the subjective difference in value between the service / product, and the sats they would have paid.
Regards,
ZmnSCPxj
📝 Original message:
Good morning aj,
> On Wed, Jun 29, 2022 at 12:38:17PM +0000, ZmnSCPxj wrote:
>
> > > > ### Inverting The Filter: Feerate Cards
> > > > Basically, a feerate card is a mapping between a probability-of-success range and a feerate.
> > > > * 00%->25%: -10ppm
> > > > * 26%->50%: 1ppm
> > > > * 51%->75%: 5ppm
> > > > * 76%->100%: 50ppm
> > > > The economic insight here is this:
> > > > * The payer wants to pay because it values a service / product more highly than the sats they are spending.
>
> > * If payment fails, then the payer incurs an opportunity cost, as it is unable to utilize the difference in subjective value between the service / product and the sats being spent.
>
>
> (If payment fails, the only opportunity cost they incur is that they
> can't use the funds that they locked up for the payment. The opportunity
> cost is usually considered to occur when the payment succeeds: at that
> point you've lost the ability to use those funds for any other purpose)
I think you misunderstand me completely.
The "payment fails" term here means that *all possible routes below the fee budget have failed*, i.e. a complete payment failure that will cause your `pay` command to error out with a frownie face.
In that case, the payer is unable to purchase the service or product.
The opportunity cost they lose is the lack of the service or product; they keep the value of the sats that did not get paid, but lose the value of the service or product they wanted to buy in the first place.
In that case, the payer loses the subjective difference in value between the service / product, and the sats they would have paid.
Regards,
ZmnSCPxj