[bisq-network/compensation] BSQ rate for Cycle 22 is 1.21 USD per 1 BSQ (#782)

chimp1984 notifications at github.com
Thu Feb 11 05:12:02 CET 2021


The price rise is going on since about 4 months. So we are constantly overpaying since. With my new charts (still pending PR) you can see much better details of historical price development. There have been a bad period around Jan 2020 where price went down to about 0.45 USD. But beside that it was pretty stable.

<img width="1322" alt="Screen Shot 2021-02-10 at 22 58 05" src="https://user-images.githubusercontent.com/54558767/107601018-763f0a80-6bf3-11eb-92a3-0bcbfad719ea.png">

Please don't misunderstand me, I am a main contributor and benefit from that current model if we overpay. But I think we made a mistake to treat the 2 sides of the DAO economy differently from the rate fixing. The BSQ fee rate gets fixed as quickly as possible. Maybe we even make it automatic some day so it adjusts to short term average market rate. With compensations we have at least a one months delay which cannot easily be avoided but due that policy we use we extended that with an additional 3 months average and 2 weeks delay for the price discussion before the cycle starts. So we add more problems to the mix. 

If we don't fix that we risk that voters will change their behaviour which is rational. 
Look at some requests like my own one with 23350 BTC (was for 2 months work) which got converted to 31133 BSQ. With current market rate thats about 77832 USD. Any rational investor who has a stake in Bisq would need to downvote my request or sell his BSQ as a project spending that carelessly is a bad investment.   

Also think what happens when this turns around.
So lets say we have an average rate of 2 USD and market rate goes down to 0.5 USD. A dev requests 10k USD and gets only 5k BSQ which has a market value of 2500 USD. I think we would lose quite some contributors. Specialluy those who have fix costs in USD like operators. If you get instead of expected 1000 USD to pay for the servers only 250 USD you will ask the to fix that as soon as possible or you cannot afford to offer your service anymore.
  

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