Incentives on Interledger

General Questions
1

Hello,

New here, and yet to consume the whitepaper.

I have a quick Q around what are incentivisation techniques used on ILP, specifically is there any economic incentive available for connectors?

Thanks,

D

2

Hi D and welcome to the interledger community! Yes, there is a possible economic incentive-- connectors can charge a spread on the transactions they facilitate. There’s a variable called CONNECTOR_SPREAD that can be set by the connector operator (https://github.com/interledgerjs/ilp-connector/blob/master/README.md#spread)

Users of ILP however may be incentivized to select connectors offering the lowest spread, so connectors offering the same pairs will need to compete amongst each other.

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