[bisq-network/proposals] Bisq 2 Reputation Protocol/ Social User Research (Issue #362)

[pazza]

Hi @UX-P

We spoke recently about the mediator role and also discussed a little of the upcoming reputation protocol.

Here are some of my thoughts about the reputation protocol and the ideas to date.

**Strengths / Positives** 

- I see having a protocol inside Bisq 2 for users to aquire no kyc BTC as vital
- I think small trades with no security deposit as feasible
- Off-chain trades = lower fees. Important for lower trades
- Encourages social engagement and builds community
- Keeps users on platform for more types of trades
- Reputation system is a good proxy for confidence of small trades being successful
- Mediation being aviable for when things go wrong provides some peace of mind for buyer and sellers

**Weaknesses / Negatives** 

- Reputation brings with it privacy concerns. I think this fact alone would make me unlikely to want to be a seller in a reputation protocol. That being said there are plenty of traders that would not mind. Most P2P platforms are reputation based and the traders there must be happy to trade knowing their privacy is somewhat comprimiised.
- Increased risk of new traders mentioning things they should not on fiat payment references (Bisq, bitcoin, etc). No security deposit means less accountability for buyers?
- Increased risk of new traders mentioning things they should not on feedback references (Thanks XXXX it was great trading with you).
- Small amount of return from trades for experienced users supporting new users to successfully onboard. Especially when taken into account potential risks (above) and fees (Channel owner burning BSQ, traders burning BSQ)

**Rules**

Principles should be in-keeping with current rules:

- Promoting good behavior from traders
- Penalizing bad behavior from traders
- Promoting good payment accounts of traders
- Penalizing bad payment accounts of traders
- Put the 'wrong doer' in a worse position and the person 'not at fault' in a better position

Specific rules to consider:

- Both parties acknowledge their are increased risks using reputation protocol. It is very much buyer and seller beware; No refunds, No arbitration, No DAO compensation requests
- Each trade should be a maximum of 0.01 BTC
- On acceptance of trade buyer should send payment immediately using the agreed payment method
- BTC sellers should send payment within 24 hours of receiving payment
- Both buyer and seller should collaborate with mediators as/when required
- Do not communicate off Bisq platform
- Buyers should leave reason for payment empty

**Improvements**

- Mediators should suggest a penalty when things go wrong. Eg buyer sends partial payment, seller sends BTC late. Sellers will need to accept that there would be no way to penalize a seller that does not complete a trade / goes AWOL.
- BTC Seller should have a BSQ bond to ensure they adhered to trade rules
- BTC Seller fees should be based on their trade volume
- BTC Sellers should be able to blacklist onion addresses / users they do not want to trade with

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