General Channel Rewards Types

There are two types of general Channel Rewards depending on the role of the Lightning Node as follows:

• The first type (i.e. LN Channel Rewards) is for standard Lightning Nodes that log payment channels with Lightning Oracles.
• The second type (i.e. LOC Channel Rewards) is aimed at Liquidity Makers who participate in the capacity market.

The two types of general Channel Rewards can be distinguished on the application level. On the base level, LN Channel Rewards require manual logging of outbound capacity, while participants on the capacity market receive LOC Channel Rewards automatically through logging payment channel capacity by using the DLSP module.