[bisq-network/proposals] Bisq donates to other projects (#48)

[Manfred Karrer]

@clearwater-trust 
Not sure if I understand your concerns correctly... I will try to make it more clear.

Regarding the last comment: 
How can it be done to convert the BTC trade fee back to the DAO (BSQ) in a decentralized way? I don't know a way to do that. If there would be an easy way we could have probably used that anyway instead using BSQ for distributing the fee to the stakeholders.

Maybe I need to specify a bit more details on the proposal:
The proposal contains the BTC address of the receiving organisation and every voter needs to do due dilligence to check if that address belongs really to the organisation. Only if the proposal gets voted ok the organisation will be used as receiver from the next voting cycle on. So it is clearly transparant who and how much they receive. We could use the Bisq donation address as the default receiver to start with.

As long we have the current arbitration system not replaced, this is not needed as the arbitrators need to get paid anyway and they will only request BSQ for the missing part. 

E.g. If they want to get compensated with 5000 USD for their work and have received BTC in the value of 3000 USD they will request BSQ in the value of 2000 BSQ. If they would earn more in BTC as they would/should earn, e.g. if they receive 6000 USD in BTC fees we also need a new model to deal with that. An easy informal way would be that they burn BSQ in that amount - thus paying 1000 USD back to the stakeholders or they fund some development work apid in BTC.

Btw. the BTC fees the arbitrators earn can be looked up by anyone on the blockchain by checking their address. Please not also that the arbitrators are co-founder and even with the currently high volume we are entering the area where they might earn more as they spend time on the work, that is not a real problem as they have donated a lot of time in the past without getting any compensation and arbitration work was underpaid for a long time as well.

I don't see a decentralized way how we can convert BTC to BSQ and we need some solution for that, specially in the case when there are no arbitrators anymore but new users who don't have BSQ want/need to pay the trade fee in BTC.

We will add also a feature for burning BSQ for repuation bonds (will be used for the planned off chain trade protocol, but can be used more generally as well). That feature would allow also a not-automated, not trustless conversion. 

E.g. a user proofs that he has burned 1000 BSQ and therefor could receive BTC in the value of 1000 BSQ. But as said, I don't see how that can be implemented trustlessly and automated. 

But if we receive too much BTC and dont want to give it away as donation to foreign projects we could consider to add a alternative not trustless/not automated solution based on that idea. 

One way could be that the Bisq donation address controller (me, will be a bonded role) will do that each months. E.g. the received BTC of a month will be converted to a BSQ value and I burn that and therefor have the right to take the BTC for myself. It is trust based but that is the donation fund anyway and it is secured via a bond. 

We could use then this feature so that I will sign up for a Bisq donation address and with end of the months I do a burning of BSQ. As long I stay honest I can continue that, otherwise the stakeholders can vote for anotherone to receive the BTC (and potentially do that conversion) and/or request confiscation of my bond. I am not very sure about the legal risks involved in such a model, and as the target is that the huge chunk of trade fee should be in BSQ anyway, I think the donation to other projects approach carries less risks.

And beside that it is a fact that we will have contribution from external projects where they do not make a compensation request for various reasons (they are too lazy to learn about BSQ, they are not crypto currency affine as part of the Tor community, they have problems to distribut it fairly - who should receive it if we want to make the Tor project a compensation?,...). Most NGOs have usually already a more or less working model with donations so that make it easier to bridge with those who are not a DAO yet.

And as @ripcurlx said it would add a positive aspect for connecting to those communities without appearing shady (e.g. you need to get into the Bisq DAO system then you can receive funds - many airdrop projects have created some damage here). E.g. if some Tor supporters think that Bitcoin and cryptcurrencies is just for speculators and scammers (I heared such complaints from some Tor guys) they will not do the step to partizipate in the Bisq DAO (beside that it takes time and effort to learn about it and evaluate it). But they probably will/can not reject if Tor gets selected to receive BTC trading fees as donations. After that maybe some will change their mind and it will be easier for Bisq to get developers from that community or find more cooperation.

Btw: We offer already compensation for people running Tor relays. But beside a Bisq contributor noboday has requested for it (I assume they dont know about it and its too much effort to learn about it). 

As Bisq heavily depends on Tor I think it is not only fair that we give something back but it is essential for pure selfish reasons. Bisq without Tor would be in huge troubles...

But of course Tor is only one example here, but that at least is an organisation where no Bisq supporter should have problems to support (otherwise they should try to run Bisq without Tor ;-)) or provide code for alternatives.

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