Working Hypotheses

  • Lightning node operators are willing to interact with the Dapp when incentivized with remunerative rewards.
  • Locking and staking of payment and utility tokens in decentralized applications can generate transaction fees in order to remunerate contributors.
  • Providing liquidity to the Lightning Network through decentralized finance represents added value and constitute fungible fundamentals for sustainable token economics.
  • Taking advantage of the Dapp allows participating node operators to provide liquidity for payment channels at a viable cost-benefit ratio. Token rewards complement the routing fees earned over the Lightning Network. Commercial benefits occur in the form of payment security and below-average procurement cost for transaction capacity to maintain payment channels around the clock.
  • For security reasons and cash management purposes, crypto exchanges are constantly looking for ways to limit their exposure. The need for dedicating funds to lock up liquidity in payment channels is a barrier. The capital requirements prevent exchanges from participating in the Lightning Network because the incentives paid by lightning nodes alone are not an attractive value proposition compared to leveraging bitcoin for margin trading.
  • These capital requirements represent a critical liquidity problem which is addressed through Plenny with the goal of solving it through DeFi and enabling instant transfers over the Bitcoin protocol on a large scale. The Dapp is focused on the lightning payments processing sector utilizing decentralized finance to re-balance capital allocation for a more efficient clearing and settlement mechanism.
  • Exchanges and trading operations benefit from Plenny when connecting their lightning node infrastructure with the liquidity of the Dapp, and thus generate additional returns on their capital locked up in payment channels.
  • Plenny generates added value through scaling. Based on the exponential growth of the Lightning Network, users of the Dapp earn increased income from token rewards. Participating users are supported in expanding the scope of the lightning nodes to process transactions under high-frequency market conditions in a real-time environment to productively handle increased market demand. Reduced capital cost and lower operational expenses are achieved through increased volume and decentralized finance. The bottom line is that higher returns result from economies of scale.
  • Re-imagining how money flows in the future helps convey the potential of lightning payments and its ecosystem. The Lightning Network leads as the overlay micro-payment network on Bitcoin, with strong potential to move into other layer-1 consensus protocols. There are a large number of use cases for instant, high-volume, low-fee payments for digital currency. For instance, micro-payments are useful when streaming content over the Internet. Lightning-enabled cryptocurrencies allow for innovation in payments and make the streaming of money possible. Technological trends such as machine learning and artificial intelligence can be easily linked to lightning transactions. Metered payments for machine-to-machine (M2M) payments amplify the value proposition of the Internet of Things (IoT).
  • Cross-chain user activity can replace passive income of asset token (a.k.a. “security token”) like earning interest or dividends.
  • In conclusion, utility and payment tokens are detected to be competitive with asset token. More specifically, relative to centralized assets of standard financial custodians and compared to crypto assets present in the DeFi-segment, payment and utility token are in the position to achieve similar rates of return as far as they are subject to the distinctive technical, economic and legal conditions of the digital economy and embedded in non-custodial decentralized applications.

Creative Commons Copyright License

<2021>

The intellectual property released by Plenny.crypto is knowledge commons. The decentralized application with its native token is a digital public utility maintained by a global community. The Dapp as well as the token serve as shared resource for the common good of all users. Plenny, PL2 is licensed under the MIT License for free and open source software. Permission is hereby granted, free of charge, to any person obtaining a copy of this software and associated documentation files (the “Software”), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions:

The above copyright notice and this permission notice shall be included in all copies or substantial portions of the Software. 

THE SOFTWARE IS PROVIDED “AS IS”, WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANT-ABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE. 

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Plenny.crypto provides liquidity to support the growth of the Lightning Network / Privacy Policy