Allocation Solution

Plenny introduces a solution to the allocation problem. Its utility is tailored for stable Lightning Nodes to improve connectivity with peers. The core offering is a non-custodial capacity market for payment channels whereby participants pay and earn rewards and collect fees.

The solution enables Lightning Nodes to provide non-custodial lightning services and leverage decentralized markets. This approach supports payment processing use cases for a more efficient clearing and settlement mechanism and helps Lightning Nodes balance capital allocation through the Ethereum ecosystem.

Economically, the LN allows participants to pay and earn transaction fees (i.e. base fee and routing fee in sat) when they use and provide payment channels. However, these fees are usually extremely low (e.g. below 0.01c), making it hard for Lightning Nodes to cover their operational expenses. Plenny builds on this underlying compensation mechanism. To improve cash flow, Plenny’s token enables Lightning Nodes to generate additional income while at the same time driving adoption of non-custodial payments processing on a larger scale.

Exchanges, trading operations, retail users, and miners benefit from Plenny when connecting their Lightning Node infrastructure with the liquidity of Plenny, thereby generating additional returns on their capital locked up in payment channels. Moreover, Plenny rewards Lightning Nodes that act as oracles for payment channel validation.