b_incentive-headers.md

Appendix B. Incentive Headers

Header Name	Description	Nodes	Signed Transaction(s)
Setup_1	Node B signs a transactions similar to the initial Settlement Transaction from eltoo [25]. Node B signs to commit to refund the initial channel funding from node A. This header from B proposes creating a channel so that A can pay B.	Sender: B Receiver: A	Settlement Tx Signed by Node B
Setup_2	Node A signs a transaction similar to the initial Funding Transaction from eltoo [25] to commit the initial channel funding to a multisig address controlled by both Nodes A and B. This transaction can be fully refunded because Node B should have already signed a settlement transaction that refunds the value back to Node A.	Sender: A Receiver: B	Funding Tx Signed by Node A
Negotiate_1	Node A proposes an update to the payment channel balance that increases Node B’s balance if Node D returns the preimage from the attached message m.	Sender: A Receiver: B Destination: D	Update Tx & Settlement Tx Signed by Node A
Negotiate_2	Node C proposes an update to the payment channel balance that increases Node D’s balance if Node D returns the preimage from the attached message m. This is similar to Negotiate 1 but Node C proposes to pay the value committed by Node A to send the message, less the amount taken by relay nodes.	Sender: C Receiver: D Destination: D	Update Tx & Settlement Tx Signed by Node C
Negotiate_3	Node D proposes an update to the payment channel balance that increases Node C’s balance if Node A signs the preimage attached message m. This is similar to Negotiate 2 but Node D proposes pays along an existing path to reduce incentive hint overhead.	Sender: D Receiver: C Destination: A	Update Tx & Settlement Tx Signed by Node D
Receipt_1	Node D proves delivery of message m by returning the preimage contained in message m and hashed with the message.	Sender: D Receiver: C	Update Tx & Settlement Tx & H(m) Signed by Node D
Receipt_2	Node C proves delivery of message m to renegotiate the state of their channel with B.	Sender: C Receiver: B	Update Tx & Settlement Tx Signed by Node C
Close_1	Node B proposes to close the channel with node A at the last negotiated distribution.	Sender: B Receiver: A	Close Tx Signed by Node B
Close_2	Node A agrees to close the channel with node B at the last negotiated distribution.	Sender: A Receiver: B	Close Tx Signed by Node A