[bisq-network/proposals] Increase trading fee (#99)
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Thu Jul 11 16:45:45 UTC 2019
### The ideal scenario
The goal is to have BSQ replace BTC in the trading fees. In my mind, the ideal seems to be to have only the first trade's fees be paid in BTC. At that moment users would acquire a "membership" in BSQ that they could spend for future trades and it'd represent 100% of the trading fee, there'd be no discount. But I don't know how realistic that is. A data analysis needs to be done to figure this out. Every cycle, contributors mint BSQ and the goal is to have a market in place so they can trade it for BTC. If the trading fees in BSQ are too cheap, that market won't ever materialize and contributors will be left holding BSQ that gets devalued with each cycle as more are minted. The trading fees are known in advance so even markets with a weaker currency should be able to price that in in their offers.
### Redistribute the trading fees paid in BTC
It seems difficult to replace BTC as the favorite method to pay trading fees. It's simply more convenient and I imagine most traders don't trade enough to justify them buying BSQ. So in case BTC remains as the favorite method, the ideal would be to aggregate all the fees in one wallet and distribute from that pool to the contributors at the end of each cycle. The problem is how to do that in a decentralized manner where we don't have to trust n persons to hold custody and distribute it. And if we design a method where we can assign that responsibility to those people, how do we reduce the risk of fraud and what would be the requirements to hold such positions? And how easy/difficult would it be for new contributors to join that circle and for old contributors to be pushed out of it?
If we get that worked out I'd prefer having that group redistribute those funds directly to the contributors instead of selling buying BSQ in the market with it.
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