[bisq-network/compensation] BSQ rate for Cycle 12 is 0.44 USD per 1 BSQ (#519)
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Tue Mar 31 17:02:51 UTC 2020
To clarify, if I understand correctly:
Current Method: 90 day Volume weighted BSQ price **divided by** Spot price of USD-BTC
Proprosed change: 90 day Volume weighted BSQ price **divided by** 90 day Volume weighted BSQ price
Seems like a totally reasonable change to make, as the whole policy of using an average is an arbitrary choice anyway. No measure is going to perfectly reflect the value one will capture for his/her BSQ, right? It's all just an estimate and stability of the policy probably being desirable for stakeholders. Would be fine to tweak the calculation if it's with the goal of moving to a more ossified policy and not just a way to bump up the low BSQ price for this month, right?
**Off topic** but related, personally, I would want to see using a 30 day average of the BSQ price and using the current price of BTC (ideally even closer to when CRs are due, but some lag is inevitable).
That .51 USD is pretty accurate to what you can exchange your BSQ for right now.
Using the longer time periods just introduces more lag. So in a declining price environment like we saw for BSQ in January, and BTC in March, people are generally being under compensated while those prices are falling which is kind of a double whammy. And in a rising price environment (like we see with BSQ today) people will be over compensated. Maybe we are seeing that phenomenon this month with the 90 day average of BSQ including the very low trades in January still, though they will roll off the average by next cycle. With stable prices, neither under nor over compensated, so no real issue.
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