[bisq-network/bisq-docs] Add user-facing DAO docs (#96)

Wed Jan 2 20:50:14 UTC 2019

ManfredKarrer requested changes on this pull request.

Great write up. A few smaller thing need changes.

> +This is why, as you see in the screenshot to the left, we use most (but not all) of our BSQ for the voting weight—we left some BSQ available for spending in case we need it for other purposes during the voting cycle.
+
+--
+
+`Vote weight from earned BSQ` is BSQ earned from contributing to Bisq: this BSQ is treated slightly differently from BSQ bought on the open market when determining a stakeholder's voting weight.
+
+For an overview of voting weight, see <<user-dao-intro#determine-strategy,this section>> of our Introduction to the Bisq DAO doc.
+
+=== 3. Reveal your vote
+
+After the blind voting phase is over, **you must make sure Bisq goes back online at some point during the vote reveal phase to publish your vote reveal transaction**.
+
+IMPORTANT: Bisq will publish the transaction automatically when it's online, so you don't have to actually do anything, but you can check the https://explorer.bisq.network/[BSQ block explorer^] to be sure the transaction was published. More details <<#explore-a-bsq-block-explorer,below>>.
+
+This transaction includes the key to decrypt your vote from the last phase. It also includes a representation of all votes you've received from the network, which is necessary to determine which peer on the network has the most complete view of all votes cast. See more details <<dao/specification#vote-reveal-phase,here>>.
+

"which is necessary to determine which peer on the network has the most complete view of all votes cast" -Maybe that is a bit too difficult to understand. what about:
which is necessary to determine a consensus about the published votes in the network

> +
+Here's a screenshot of the past few BSQ transactions as of mid-December 2018. You'll notice that this block explorer recognizes the various transaction properties that make valid BSQ transactions, and it labels them accordingly:
+
+.Some BSQ transactions on the https://explorer.bisq.network[BSQ block explorer^].
+image::bsq-block-explorer.png[Some recent BSQ transactions]
+
+== Next steps
+
+At the moment, the Bisq DAO is being tested thoroughly. If you'd like to help, there are bounties! https://bisq.community/t/how-to-explore-the-dao-on-testnet/6692[See more details here^].
+
+Otherwise, check out our <<user-dao-intro#,conceptual overview of the Bisq DAO>> and our https://www.youtube.com/playlist?list=PLFH5SztL5cYOLdYJj3nQ6-DekbjMTVhCS[video series^] on DAO concepts.
+
+== Get help and stay in touch
+
+If you get stuck, reach out! There's a community of people to help you on the https://bisq.community/[Bisq forum^], the https://www.reddit.com/r/bisq/[/r/bisq subreddit^], and the https://bisq.network/slack-invite[Bisq Slack team^].
+

Maybe sort by priority (e.g. reddit at the end - or remove it as we dont monitor reddit closely)

> +
+* Contributors _maintain_ Bisq through valuable work
+* Traders _use_ Bisq to buy and sell bitcoin and other cryptocurrencies
+* Contributors _earn_ BSQ tokens when their compensation requests are approved through voting
+* Traders _buy_ BSQ tokens in order to pay lower trading fees
+* Stakeholders _vote_ on compensation requests
+* Contributors can _lock_ a bond in BSQ to ensure integrity in high-trust roles
+
+Now let's see how these dynamics enable the Bisq DAO to provide 3 core governance functions without any central points of authority.
+
+=== Earn and distribute revenue
+
+Every project needs to be financial sustainable to fund ongoing operations and development. But traditional means of handling revenue and revenue distribution are necessarily centralized—any receiving address or account must be owned by one person, or a small group; determining how much a person should be paid must be determined by one person, or a small group; etc.
+
+The Bisq DAO seeks to avoid such centralization of authority. So, instead of taking in trading fees and then distributing them, the Bisq DAO distributes fees first and then puts them up for sale.
+

I think that is not clear: "the Bisq DAO distributes fees first and then puts them up for sale."
Maybe: 
So, instead of having a central authority taking in trading fees and then distributing them to contributors, the fees get burned or "uncolored" and by that each stakeholder experience a slight value increase because BSQ is taken out of supply thus making each unit of a token slightly more valuable.

> +Here's how it works: after a Bisq contributor does work, they file a **compensation request** in the DAO with a description of what they did and how much BSQ they want in return. Then, stakeholders (who are other contributors, traders, and anyone else with BSQ) vote for/against the request. If the request is approved, the contributor is issued new BSQ in the amount they requested.
+
+[NOTE]
+.Where does new BSQ actually come from?
+====
+Recall that a BSQ token is merely colored bitcoin. When a contributor makes their compensation request in the DAO, they must also include the tiny amount of bitcoin to be 'colored' as BSQ (<<dao/specification#,the spec>> requires 100 satoshis). So if a contributor requests 1,000 BSQ, they will need to include 100 * 1,000 = 100,000 satoshis with their compensation request—just about 3 USD at current rates.
+
+If their request is approved, those satoshis are 'colored' and recognized as 1,000 valid BSQ tokens on Bisq. Assuming a BSQ market value of 1 USD (exact value will fluctuate), the contributor will have been granted 1,000 USD worth of BSQ for a negligible cost of 3 USD.
+====
+
+Then, a trader looking for lower trading fees can buy those BSQ tokens from the contributor. When they buy BSQ tokens for BTC, the contributor is paid for their work, and the value transfer is complete!
+
+In this way, there is no need for a central entity to collect and distribute revenue: the BSQ token enables a transfer of value from producer to consumer without any single entity controlling any aspect of the decision-making or distribution process.
+
+Please note: the Bisq DAO does not _require_ traders to use BSQ for trading fees. They're free to pay trading fees directly with BTC, but they will pay higher rates than if they bought BSQ with BTC and paid with BSQ instead.
+

Maybe we need to add info where those BTC fees end up? 
Short answer: the arbitrators
Long answer: with new trade protocol (comes some time after dao launch) they are sent to a "donation" address determined by voting (e.g. Bisq donation address). From there BTC can be used to buy BSQ on the market and then burn it and by that distributing it to all stakeholder.

> +In this way, there is no need to rely on a single leadership team for direction: the community collectively manages itself.
+
+=== Ensure honesty in high-trust roles
+
+Despite the Bisq project's attempts to resist concentrating control as much as possible, it's impossible to avoid in some places. Domain name owners, social account admins, mediators, various node operators: these are all roles that must exist, but necessarily retain significant control and require a high degree of trust.
+
+Part of the benefit of a centralized team of thoroughly-vetted people reliant on a paycheck, as is the case in most companies, is that the risk of trusting people with significant responsibility is lower: they have a lot to lose if the company finds they have violated their integrity and engaged in foul play.
+
+This dynamic can be reproduced—at least partly—in a project without a central authority through **bonding**. The concept is simple enough: create skin in the game. Require that a person interested in taking on a high-trust role post a bond that's high enough to discourage them from engaging in foul play.
+
+But what happens if that person goes rogue? In a project without central authority, who decides when they've crossed the line, and what their fate should be?
+
+As with strategy and compensation, the community decides through voting. Anyone who suspects foul play can make a case for confiscating a bond with a new proposal, and stakeholders vote to determine an outcome.
+
+NOTE: Confiscating a bond is a harsh penalty which should not be taken lightly. Therefore, the Bisq DAO makes confiscation proposals especially hard to approve. Whereas regular proposals cost 1 BSQ to make, a confiscation proposal costs 100 BSQ to make, and it requires a quorum of at least 100,000 BSQ and 75% acceptance to pass (instead of the typical >50%).
+

"Whereas regular proposals cost 1 BSQ to make, a confiscation proposal costs 100 BSQ to make,"
That is wrong. Fee is always the same.
Quorum is atm 200 000 BSQ and threshold 85%.

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