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

Florian Reimair notifications at github.com
Mon Apr 13 12:55:32 UTC 2020

> currently there's not ennough BSQ bids to satisfy the amount of asks

there have never been enough bids to satisfy the amount of asks. the only reason why the Bisq market still is somehow functional is because stakeholders are not trying to sell. There are hundreds of thousands of BSQ out there waiting to be put to market. Given some stakeholders are actually contributors, they someday will sell. 

We saw in late 2019 what happens if contributors dump BSQ  - the price crashed. Enough to trigger a management change. And the amounts where very small back then (100k?) It is bound to happen again - we just do not know when it will appen.

> We should thank that trader for his market maker labour

if we go through with that, I am certain we can drop the price even more. Which means that compensation requests get higher and higher and we risk for inflation taking over uncontrollably. Given a high enough inflation, we might risk big stakeholders leaving with the project - by dumping their BSQ which might be the end of Bisq.

> Increase BSQ demand or reduce expenses.

We cannot undo issuing the hundreds of thousands of BSQ that already have been issued in the past. So reducing expenses to me seems not a way that leads to any success. And growth efforts are already under way. Worst case, we might not be able to catch up at all, because attacks are bound to come in and the more we reduce expenses on fixing stuff the more expense for reimbursement will grow.

> Yep, this is how the free market works.

Well, if Bisq is willing to give its revenue to traders instead of its contributors, then Bisq must be transitioned to a free trading platform which requires no trading fees at all (because the fees are paid for by Bisq revenue anyways).

Thing is, the BSQ market is designed to sustain the Bisq infrastructure. Given a big-enough market, this might work with a free market. However, the market isn't big enough. And signs are there that it might worst case never will be.

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