[bisq-network/support] Refund agent reimbursement leak (Issue #1052)

refund-agent2 notifications at github.com
Tue Jan 18 11:50:01 CET 2022


#### Abstract

I'm having considerable loses because of the way reimbursements work, which I didn't notice until now. This reimbursement would put me into small positive balance since I started as Refund Agent in Cycle 20.

#### Reimbursement leak due to BSQ generation tax

Every reimbursement request needs 100 sat for every BSQ generated. As the amount to be reimbursed is equal to the refunds, this "tax" puts me into losses for most cycles, unless the compensation amount is higher than the tax. That only happens eventually, when there's many cases for small amounts.
For example, at this cycle, I had to spend  0.0762 BTC in taxes to get the 76256 BSQ to be reimbursed. The compensation was 1446.61 BSQ, which is about 0.044 BTC; I lost around 0.03 BTC.

BSQ generation tax has side effects relevant to the DAO and traders which should be discussed further, but I'll leave my opinion here:

1.  @burningman3 might have been keeping non-BSQ funds after burning BSQ: I would not find that wrong, as the most Bisq critical role just ask for 1000USD as compensation, but this point needs to be clarified and reflected.
2. Reimbursed traders are not being completely reimbursed: they should, as well as me, be reimbursed completely, correctly calculating the reimbursements to compensate this "tax". The difference is that I have to ask to be retroactively reimbursed, while I think they shouldn't. I consider it as an arbitration fee, which won't be charged anymore.
3. Contributors might be already considering this tax in their compensation request: they just get a little bit less from their request so I don't think it's necessary to specify this cost.

####  Reimbursement request

Since I started as RA, total amount of BSQ reimbursed was 339372.52 (see table below).

For every BSQ created 100 sats are spent. At 0.00003000 BSQ/BTC, that's a 100/3000=3.3% BSQ cost.
Every extra BSQ that I ask generates another 3.3% as a cost, so: 0.033+0.033²+0.033³+0.033⁴=0.034126

To get the total *Total BSQ generated* and * generation cost* is multiplied: 
339372.52*0.0341 = 11581.43 BSQ which equals to 0.347 BTC.

I'll ask as a reimbursement for these costs **11581.43BSQ**.

|Cycle|BSQ reimbursement|
|-----|-----------------|
|21   |43413.34         |
|22   |35468.71         |
|23   |16963.21         |
|24   |35387.23         |
|25   |0                |
|26   |46291.69         |
|27   |9518.87          |
|28   |36054.07         |
|29   |25904.41         |
|30   |14114.99         |
|31   |76256            |
|Total BSQ|339372.52        |


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