[bisq-network/bisq] Running the numbers on Bisq DAO revenues (#5171)

chimp1984 notifications at github.com
Fri Feb 19 02:07:26 CET 2021


I agree that we have to take care to not create too much parallels to normal corporate models as the DAO is just too different.

> Liabilities would be, for example, outstanding funds owed to security incident victims.

I also see a liability as legally enforcable, which is not the case in the DAO. If the DAO stakeholders decide tomorrow to not pay back the victims they might ruin the DAOs reputation and by that the market value of BSQ but they can do that if the  majority of stakeholders wants to. Same with paying contributors. The incentives to act fair and to fulfill social contracts is based on repuation and game-theoretical concepts (e.g. the DAO is vulnerable to a majority attack but they would destroy their own investment by doing that).

I think the main goal should be to get clear numbers of the revenue and expenses. This is the main metric for the DAO economy. 

Success metrics like trend for number of trades, volume, fees, number of users, etc. would be nice to have as well. 

But one should keep in mind that those financial metrics will not be sufficient to evaluate the DAO or even BSQ.
One could imagine for instance in case the Bisq exchange would come to a halt for whatever reason and no BSQ get burned anymore and no new BSQ issued, that the DAO and BSQ would still have a utility as a source for reputation and a tool for decision making, which could be used by an external project for instance, and therefor would have some value which might be difficult to represent in numbers. 
A financial model which would only consider the flow of burned and issued BSQ would not be able to represent that. But that is anyway outside of the scope of any financial model. It illustrates that the parallel to a coproration is limited, and the DAO has a broader scope, similar like an NGO or other institutions which are not (solely) profit-orientated but create value which cannot be evaluated by those models. If we would see the DAO like a copropration their ultimate goal would be profit-maximisation though the goal of the DAO are defined by their stakeholders.

Beside that we should not forget the "intrinsic" value of BSQ in form of the underlying BTC satoshis, which have a considerable value with the high BTC price (4M BSQ = 4 BTC = 200k USD). This is one of the limitations of BSQ, in case BTC grows by factor 100 and BSQ not, then the underlying value of the BTC satoshis are getting too expensive to serve as carrier. Though that would be an indication of failure if BSQ cannot partizipate on the success of BTC.

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