[bisq-network/proposals] Bisq revenue generated by BTC trading fees belong to the contributors (#207)

MwithM notifications at github.com
Mon Apr 13 12:18:18 UTC 2020


> Recently, the BSQ market has been discovered by at least one trader. Given the attractive gap between buy and sell offers, it is a perfectly legit strategy to buy cheap and sell expensive. However, the BSQ market is not balanced at all, sell volume is significantly higher then buy volume.

I see no problem here. We should thank that trader for his market maker labour, bringing the gap closer and making the market a little more "balanced". If that is making he rich, other traders will try to copy that lucrative strategy, increasing BSQ volume and helping BSQ to find its price.

Traders and contributors (when they're not the same person) have the same possibility to get burningman orders. When someone sells at lower prices, the burningman gets to destroy the max amount of BSQ possible, which reduces BSQ monetary mass, in favour of the rest of contributors holding BSQ.

Your proposal adds a high amount of complexity to BSQ compensation distribution (and it looks like the burningmans have ennough trouble to perform the current system).
Also, it looks like it only contemplates lower and lower BSQ prices. Contributors would not benefit from having a fixed BSQ price based on an average price when the price at the time of distributing BTC to contributors is higher than the average of the past days. Now, they individually get to decide at what price they try to sell their BSQ.

The problem Bisq faces is that currently there's not ennough BSQ bids to satisfy the amount of asks. There's two solutions to that problem: Increase BSQ demand or reduce expenses.

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