PhoenixAcinq’s Lightning wallet, has undergone great importance improvements With the introduction of splicing technology, resulting in a more efficient and user-friendly experience. Unlike previous versions, which created multiple channels and incurred unexpected fees, the new Phoenix manages a single dynamic channel, eliminating the need for scattered liquidity and splitting issues.
With tethering, users can now change the size of channels and add or remove funds without adding future risks. The previous 1% fee on incoming liquidity has been replaced by a mining fee for the underlying cross-chain transaction. The announcement emphasized the importance of linking, saying, “We believe the efficiency gains from braiding are so extraordinary that all wallets will eventually implement them.”
The updated version of Phoenix also addresses users’ concerns about unexpected channel creation fees. Users are now notified in advance when a channel management fee is charged for an incoming Lightning payment, allowing for granular control over fee management. In addition, the fee for sending Lightning payments is now capped at 0.4%, ensuring transparency and aligning incentives between users and the wallet provider, “to find the best (reliable and affordable) route within the fee budget.”
One of the standout features of the new Phoenix is the unreliable tradeoffs. Instead of relying on swap services, which often lack flexibility, Phoenix allows users to perform on-chain transactions directly from their channel. Users are free to set their own positions and even edit the fee later for faster confirmation.
While linking provides notable benefits, it is worth noting that offshore barter services still have advantages in some transactions. These services cut the link between off-chain and on-chain, preserving channel size and adding inbound liquidity.
The new Phoenix wallet marks a milestone in the development of self-custodial wallets. Its enhanced features, such as connectivity, improved predictability, and trustless exchanges, showcase the ongoing innovation in the Lightning Network ecosystem. The announcement noted that users can look forward to developments such as encrypted funnels for improved privacy, BOLT 12 / offers for flat Lightning billing and Taproot for cheaper channel management and improved on-chain privacy.
The beta version of the new Phoenix is currently live for Android users, with an ETA for iOS expected in the coming weeks. Interested users can apply for the trial by emailing phoenix@acinq.co.