[bisq-network/proposals] Distribute trade fee in BTC by using proof of burn (#317)

sqrrm notifications at github.com
Wed Mar 3 12:11:56 CET 2021


I see a big challenge in the high mining fees going forward and I think that needs to be dealt with first. The idea of using bonds to distribute fees doesn't sound all that bad, but I think it won't be helpful by just switching the current scheme to directing fees to contributors directly.

One way to reduce output bloat would be to merge fees from buyer and seller to one output if we can get the single tx protocol working.

Another thought is that if party A in a trade is paying the fee by burning BSQ, then B could pay a bit more BTC to A as part of the trade and A would burn that extra BSQ to pay the fees. This would be beneficial to A as the value of BTC received would be larger than the extra value of BSQ burnt as long as we keep the BTC/BSQ fee ratio at 2.

I think that would be a quite common scenario that a frequent trader that has BSQ is trading with a new trader. A benefits by gaining some extra BTC for the BSQ burnt, A and B benefits by the smaller tx size and the DAO benefits by not having to deal with more BTC fee bloat.

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