[bisq-network/proposals] BSQ conversion rate for compensation requests (#92)
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Wed May 15 16:10:52 UTC 2019
> _This is a Bisq Network proposal. Please familiarize yourself with the [submission and review process](https://docs.bisq.network/proposals.html)._
We discussed before the DAO launch how we should set the conversion rate used for compensation requests. All contributors and voters should have a consensus as otherwise proposals would risk to get rejected if contributor and voter have different rates in mind. There have been basically 2 ideas:
- Use the 1 USD/BTC rate for the first 3 months independent on the real market price
- Use the market price average of the last 3 months (would use 1 USD for the months before the launch)
We did not make a decision and left it a bit open how the market develops after the launch.
I think in the first voting round most people used the 1 USD rate even it was not explicitely discussed.
I would suggest to try to find a consensus what we should use as otherwise it might be confusing, specially for new contributors.
I think both ideas above are good, but the fixed 1 USD would be somewhat easier and avoids the risk of a negative downward spiral. We have to keep in mind the the economic model of the DAo will need a few months to develop as we started with a 90% trade fee discount. As many users have already moved over to use BSQ that effect on the revenue is even stronger as anticipated. We should start to increase both the BSQ and BTC fee so that our target fee of 0.4% per trade is reached. But we cannot do that too fast and too radical, so I think it will take 3-4 months until we get back to a revenue of 0.4% of the trade volume. Until that time the expenses for contribution requests should not be too extreme as otherwise the revenue/expense ration turns even worse. A market based converion rate would carry some risk that people don't want to buy BSQ as expensed are getting higher and income from fees are lower, so the economic sustainibility is weak. As said we need a few months until raising the fees and I think in that time we should not over-expand the expenses.
But of course all just my opinion. Please leave your opinion or ideas in the comments and lets see if a consensus emerges.
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