Q: What is Plenny?
A: Plenny connects the Bitcoin Lightning Network with Ethereum through the following simple guiding principles:
- A Satoshi logged is a Plenny earned.
- Plenny connects nodes on the Lightning Network and expands payment channel capacity via the Ethereum ecosystem.
- Following Bitcoin’s principle of “Be Your Own Bank” Plenny supports the growth of the Lightning Network by providing decentralized services Lightning Nodes that empower everyone to run their own payments server more efficiently, conduct instant transactions without middlemen, and as such scale and democratize clearing and settlement mechanisms on a global level.
Q: Is Plenny pegged to bitcoin or ether or USD?
A: No, Plenny is not pegged to the price of bitcoin or ether or USD. Price formation of PL2 is set on free markets.
Q: What is the value of Plenny?
A: Because Plenny is not pegged to an underlying asset like BTC or ETH or USD but is instead linked to providing lightning services, its inherent value relates to the capacity of participating nodes and the number of users in the ecosystem. Fundamentally, the Plenny-Dapp leverages payment channel capacity locked up in lightning nodes. Tokens reflecting payment channel activity are backed through implied collateral and secured in smart contracts on a non-custodial basis. The practical value of Plenny derives from the utility of the Dapp and the DON as well as the trust users put into decentralized technologies, which are based on both the Bitcoin and Ethereum blockchain.
Q: Is Plenny supposed to replace bitcoin?
A: No, Plenny is a complementary token based on Ethereum to supplement the provision of liquidity for the Bitcoin Lightning Network via the Ethereum ecosystem. There are different cryptocurrencies used by the Dapp and its integrated Decentralized Oracle Network (DON). Plenny utilizes bitcoin, more specifically sat, ETH and PL2, known as Plenny, the token of Plenny.
Q: What is the ticker symbol of Plenny?
A: The cryptographic token is called Plenny (plennies), a.k.a. “lightning penny,” using the ticker symbol PL2.
Q: How is money earned with a Lightning Node and Plenny?
A: At the entry level, standard lightning nodes receives channel rewards for connecting outbound capacity. Among other things, you can use it to license inbound capacity over the capacity market. At the advanced level, lightning nodes download a multifunctional open source software, namely the DLSP module, to act as Liquidity Makers or Lightning Oracles and earn Royalties as well as Channel Rewards.
Q: How can Lightning Nodes earn money without downloading the DLSP module?
A: Simply join Plenny with your Ethereum wallet. First, Lightning Nodes receive the Baseline Reward for verification. Once verified, standard Lightning Nodes start earning LN Channel Rewards for logging their outbound capacity via Plenny.
Q: How to find the “Channel Output Index”?
A: There are several ways to find the “Channel Output Index”. In any case, you must first get the transaction ID of the channel opening transaction. A quick and easy way to find the necessary data is to visit a Lightning Network directory or search engine. Search for more details by entering your transaction ID. In case of 1ML.com, check the record of the “Channel Point”. The “Channel Output Index” is the last number after the colon. It is either 0 or 1. See an example here:
Q: Where is the Plenny DLSP module available for download?
A: You can download it on GitHub. Click the link on the bottom of this page.
Q: How does a Lightning Oracle earn money?
A: Lightning Oracles earn money for validating the opening and closing of payment channels on the Lightning Network. To start with, users download the Plenny DLSP module, which enables lightning nodes to provide decentralized lightning services and receive rewards. This add-on tool computes transaction data off-chain and works with the Bitcoin Lightning Network and your Ethereum wallet.
Q: How does a Liquidity Maker earn money?
A: Liquidity Makers earn money for licensing transaction data services via payment communication channels. Licensing inbound capacity enables Liquidity Makers to earn Royalties and receive Channel Rewards. In parallel to operating regular payment channels using sat over the Lightning Network, Liquidity Makers utilize the token of Plenny to participate in the capacity market (i.e. Lightning Ocean). The licensing fees are paid by Liquidity Takers. In addition, LOC Channel Rewards and the Baseline Reward are granted by the Dapp. To start with, download the Plenny DLSP module and connect it to your Ethereum wallet.
Q: How do Bitcoin exchanges benefit from Plenny?
A: Bitcoin exchanges benefit from Plenny by using the capacity market. Logging channel capacity in exchange for PL2 generates additional returns on their capital locked up in payment channels. Furthermore, connecting their Lightning Node infrastructure with Plenny facilitates instant payment acceptance for BTC. Customers of exchanges benefit too as they no longer have to wait for blockchain confirmations.
Q: How does Plenny cover its costs?
A: To compensate for its value-adding utility, Lightning Nodes share token rewards with Plenny. Integrated billing functions collect transaction fees. The costs are covered by income derived from providing decentralized lightning services. Creating practical utility for Lightning Nodes and the exchange of value between users are understood to be essential aspects of the token economy.
Q: How does Plenny distribute revenue?
A: Plenny does not generate profits for others or invest the funds of others, nor does it distribute revenues to third parties. Lightning Nodes earn money on their own when providing services via Plenny. Income earned by Plenny is used to support the token price. The RePLENishment Trigger features a rebase mechanism that includes both burning as well as buybacks. This communitydriven trigger causes the smart contracts to collect fees and replenish the Treasury HODL with fresh liquidity from token income. The given configuration makes the treasury technically inexhaustible, thereby ensuring the liquidity of Plenny over time.
Q: What affects the price of Plenny?
A: In addition to network effects and monetary policy that have an impact on price, the benefits resulting from using the lightning services facilitated by Plenny affect the price. Ultimately, the exchange rate is determined by movements in decentralized markets. This open design approach is typical for disruptive innovations and enables speculative behaviors to catalyze the cost-benefit ratio. If the Bitcoin Lightning Network continues to grow, then this process will likely influence the value of PL2.
Q: Is PL2 like wrapped bitcoin or “trustless” Ethereum-style bitcoin?
A: No, Plenny uses PL2, a standard ERC-20 token. PL2 is not wrapped bitcoin in an Ethereum contract. Instead, it uses a specifically designed concept for noncustodial collateralization. Theoretically, this technique is understood as a distant relative of wrapping. Practically, it is a technical mechanism for creating channel rewards that leverages underlying liquidity but does not refer to a deposit of money. Instead, this concept refers to implied collateral, with channel capacity logged in sat and linked to PL2.
Q: What does “NCCR” stand for?
A: NCCR means Non-Custodial Channel Rewards. Utilizing the NCCR-mechanism, Lightning Nodes log their outbound capacity (local balance in sat) to prove their control of collateral secured on their computer to generate rewards in PL2 over the Plenny-Dapp. Token rewards depend on the amount and duration of bitcoin locked up in payment channels when providing capacity to the Lightning Network. The NCCR-mechanism provides a unique procedure to leverage bitcoin and expand payment channel capacity via Plenny. These and other features of the Dapp allow Lightning Nodes to participate in the Ethereum ecosystem, ultimately helping to grow the Lightning Network.
Q: Does Plenny support locking of tokens?
A: There are several use cases where PL2 is locked in smart contracts. For example, down payments from Liquidity Takers to license inbound capacity from Liquidity Makers via the capacity market. In addition, locking is used for the validator threshold that supports the concept of Proof-of-Stake (PoS). In this scenario, Lightning Oracle Validators lock a minimum amount of PL2 that allows them to join Plenny’s Decentralized Oracle Network (DON).
Q: Does Plenny support staking?
A: Yes, a liquidity staking contract allows LP-token to be staked for Fish Farming and earn rewards via the Dapp. As a first step, users allocate ETH and PL2 to a specific liquidity contract via a corresponding decentralized exchange, which supports the liquidity mining program. LP-tokens are then staked for Fish Farming via Plenny. In addition, DAO Governance supports staking of PL2 to earn rewards.
Q: Which DEX supports Plenny’s liquidity mining program?
A: Yes, there is indeed a liquidity mining program that allows Plenny Whalers to get LP-tokens from the liquidity contract on the Sushi V2 DEX with Arbitrum One (Ethereum L2). LP-tokens are used for liquidity staking on the Dapp, also known as fish farming, thereby earning rewards in PL2.
Q: How is money earned on Plenny without running a Lightning Node?
A: There are multiple use cases allowing one to make money without running a Lightning Node. For instance, you can join the liquidity mining program and become a Plenny Whaler and start Fish Farming on the Dapp. In addition, you can stake PL2 over DAO Governance and earn rewards. Best of all, any Ethereumuser can call the community-driven RePLENIshment Trigger or the Election Trigger and receive rewards.
Q: What are Plenny Whalers?
A: In community jargon, Plenny Whalers are Liquidity Providers (LPs) using automated market maker (AMM) protocols. They are the “big fish” that provide liquidity via decentralized markets. LPs allocate cryptocurrency on the DEX, which is linked to Plenny’s liquidity staking contract for Fish Farming on the Dapp.
Q: What is “Fish Farming”?
A: Liquidity Providers (LPs) receive liquidity tokens to be used on the Dapp and consequently earn rewards in PL2. In community jargon, this staking activity is referred to as “Fish Farming” as LPs “fish” for PL2. Therefore, LPs are also known as whalers who catch Plennies.
Q: What are Plenny LORCAs?
A: In community jargon, Plenny LORCA refers to Lightning Oracle Validators. The term follows Plenny’s maritime theme and ties in with the orca, known as the guardian of the ocean.
Q: What does “Plenny” mean?
A: Plenny is the name of the whale depicted in the logo. This intelligent and cooperative animal feeds on small things from the bottom of the food chain, similar to Plenny and the Lightning Network with their focus on sat, the smallest unit of bitcoin. As the story goes, Plenny™ is a blend of words consisting of “plenty” and “penny” that together form a new word.
Q: Who are the people behind Plenny?
A: A number of community members work in applied research and development in the West and East alike. Based on the right to freedom of research in the sense of the Platonic Academy, Plenny’s early adopters have volunteered to participate in this online field trial. They are working on their shared vision of amplifying the growth of the Bitcoin Lightning Network in concert with the Ethereum ecosystem. Needless to say, Plenny is focused on decentralization, not speculation.
Q: Where is Plenny located?
A: There is no physical headquarters. Plenny is maintained by community members over the open Web. Imagine a random group of crypto-natives sitting at their laptops in various emerging countries. That’s where Plenny is located.
Q: Do you have a team page?
A: Essentially, Plenny is not about careers. It’s the learning experience and the code that matters. Consequently, this open-source project cannot be reduced to a list of CVs on a team page.
Q: Who invented Plenny?
A: Plenny was first conceived after one of the cryptocurrency crashes in recent years. At the time, a few crypto punks hosted a series of private workshops and virtual sessions and came up with the concept. This anonymous hackathon group goes by the name of “Charon’s Viaticum.” The people behind the pseudonym shall remain of trivial importance for all time. He/she/they invented key elements and contributed a few technical things. Since Charon’s Viaticum regarded Plenny as a technical gimmick, they gave the Nucleus to anyone who was interested in Bitcoin and Ethereum. Also, in light of the ever-changing regulatory environment, they donated the original token inventory and left soon after. The story goes that all these pieces were declared public domain and made available via open source. Eventually, a chat group of blockchain engineers discovered the leftovers on the web and adopted the Nucleus to start an online field experiment. Thus, innovation continued, a new Dapp was born, and a new community was formed.