[bisq-network/proposals] BSQ trading fee update on Cycle 21 (#301)

MwithM notifications at github.com
Thu Feb 4 10:42:13 CET 2021


The cap to raise BSQ trading fees is because we prefer to give a higher discount than a big raise (over 15% monthly) in the amount of BSQ fee paid per cycle. Furthermore, bigger discount should incentive users to burn more BSQ paying trading fees, so market should self adjust. For Cycle 20, BSQ trading fee discount was going to be over 60% and I wanted to take the opportunity to promote the use of BSQ. Vote failed while the BSQ price increased drastically, so that was not possible.
Traders won't comply when the BSQ trading fees are suddenly reduced so there is no cap to reduce trading fees, they just go back to 50% related to BTC.
The parameters to determinate the trading fees are [well known](https://bisq.wiki/Updating_BSQ_trading_fees#Determine_new_BSQ_fees):  30 day average for BSQ price and daily price at the moment the fees are calculated, which is 3 days before the end of proposal phase.
In my opinion, this has worked particularly well. If I had to change something, maybe I would use 30 day average for BTC price as well or increase the cap to raise BSQ fees to 20%, but it's not urgent.

BSQ compensation rate is the 90 day average 7 days before end of proposal phase. I would go back to the previous way where we used the 90 day average at the beginning of the cycle, as the issue with the [outliers](https://github.com/bisq-network/proposals/issues/270) seems to be solved and there is not much discussion about the rates to use for compensation.

The biggest difficulty is for reimbursements. They use 30 day average at the day they make the request. They should not change it, no matter what the BSQ price does. Arbitrator uses the price of lower sell offer with BM (and made the #294 issue to change it) and I suppose traders use the same rate as arbitrator.
BSQ from compensation can only be sold at market, burnt to pay trading fees or held as an investment. Reimbursements can also be sold to BM. As the reimbursements can be higher than compensation amounts, we need to have a clear policy about it.

Contributors use a longer average price as a way to indicate their commitment to Bisq on the long term, while for reimbursements, I don't find that necessary.

-- 
You are receiving this because you are subscribed to this thread.
Reply to this email directly or view it on GitHub:
https://github.com/bisq-network/proposals/issues/301#issuecomment-773172919
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://lists.bisq.network/pipermail/bisq-github/attachments/20210204/52cd9334/attachment-0001.htm>


More information about the bisq-github mailing list