[bisq-network/proposals] Distribute trade fees paid in BTC to victims if the recent security issue (#205)

chimp1984 notifications at github.com
Wed Apr 8 23:22:51 UTC 2020


One option how we could deal with the losses from the [recent security issue](https://bisq.network/statement-security-vulnerability-april-2020) would be to distribute the trade fees paid in BTC to the victims until they have been reimbursed for their losses.

This would have the benefit to not force them into the BSQ ecosystem and does not directly add market pressure in case we would issue BSQ which would get sold to BTC by the victims and therefor could cause negative price dynamics. It is also easier to deal with as it does not add another exchange rate and its volatility risks.

The implementation could be done in a pretty simple and low risk fashion as done in https://github.com/bisq-network/bisq/pull/4150.
We use the Filter object here to add a list of addresses which are used by a simple random selection algorithm to select the receiver. The filter is a P2P network object and can be adjusted dynamically and fast. The selection algorithm could be improved to weight those victims higher who have larger losses so that they distribution schedule becomes more fair.

Downside:
- It adds more trust to the Filter operator (a core dev). I assume thats a low real risk as any abuse would be detected quickly and the role operator is already a highly trusted contributor.
- Over-extending the scope of the Filter model. This is a different type of field than the other filter values. We abuse the feature of the Filter for a non-related use case.

Upside:
- Very easy and low risk to roll out
- Victims get reimbursed in BTC and not in BSQ
- Automatic spreading over period of time with fee revenue
- Does allocate a certain percentage of revenue (I guess its about 30-40%) for the reimbursement without involving DAO features 

If the idea gets support from Bisq contributors we should reach out to the victims to ask for their opinion and if they are supporting that idea as well.


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