[bisq-network/roles] Mediator (#83)

ifarnung notifications at github.com
Thu Jan 9 12:01:29 UTC 2020


It should be clear to any observer that the BSQ price and market has been very weak this month so far.  Of course it's difficult to balance the supply and demand, and only 6 months ago I could barely find any BSQ to buy for my personal trading.  But issuance has soared since then relative to the amount being burned in fees at least.  So it does makes sense to me to look closely at the operating costs that we are seeing in compensation requests.  Maybe there are places to cut costs.

Not that I can say I understand the work required to mediate a case, except from the point of view of a customer in a mediation, but it struck me that 50 BSQ per case was quite a high rate to charge.  Now we are seeing the monthly bills hitting in comp. requests and I can give some minor analysis.

Hypothetical User X (prefers to remain anonymous) made 225 trades and had 9 cases that went to mediation (or legacy arbitration), none due to negligence, though 1 or 2 to software errors the prevented the trade from completing.

A mediation rate of 4% and a cost to BISQ of 450 BSQ.
Fees paid in BSQ and revenue to BISQ were 3,050,000 sats all on the maker side.  So assume 3x for the taker side, 9,150,000, arriving at 12,200,000 sats total.  At 8500 sats per BSQ this is 1,435 BSQ.

So in an average case, the cost of mediation alone is already a huge chunk of fee revenue.  And because it's a variable cost, it will scale more or less with exchange volume growth.  So I think it's quite important to carefully consider the cost of that role.



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