[bisq-network/proposals] Have a clearly defined process for how Burning man trades BTC from donation and trade fee addresses for BSQ (Issue #367)

[pazza]

> 50% announce sounds ok.

Great, I have edited the proposal above to include this. Hopefully now @ghubstan can turn give it a thumbs up.
 
> How can the burning man verify which transactions belong to what reimbursement case? 

I do not think verification is needed. The fact that the user has has a reimbursement accepted by the DAO means they would be eligible to do a direct trade with yourself. The funds used to reimburse they are not required to be from their original deposit transaction / donation address payout. 

My suggestion would be:

- Should a trader, who received a partial payout from the Refund Agent, want to trade with Burning Man directly they have 2 cycles following their arbitration summary to make a reimbursement request. If they make a reimbursement request after 2 cycles they will forfeit the option to trade directly with Burning Man.
- Once the trader that has had their DAO request for reimbursement approved they are pointed to instructions as to how to trade with Burning Man
- @refund-agent2 is responsible for advising trader about the above process at the earliest possible stage, informing the trader about putting in a reimbursement request within 2 cycles, and making the connection between the trader and Burning Man once DAO has accepted it.
- The trader has 1 cycle following reimbursement to trade with Burning Man for the exact BSQ/BTC price as in their proposal. This will mean they end up with the same amount of BTC as per their arbitration summary.
- Should the trader not trade with the Burning Man within 1 cycle they will not be able to trade with Burning Man directly and will instead have to sell BSQ on the open market in Bisq.

If the above was in place this would meant:

- Any UTXO's above 0.5 BTC older than 3 cycles in the donation address are good to be traded for BSQ.
- Any UTXO's below 0.5 BTC of any age in the donation address are good to be  traded for BSQ..

> I don't think it will work to say the burning man should track all reimbursement cases to check which outputs to keep and which not to keep. 

Do you think the suggestion above about being able to use any UTXO under 0.5 BTC and any UTXO over 0.5 BTC, if older than 3 cycles, would work?

> Right now there is one 2.6 BTC transaction that has not been claimed for reimbursement, some of which I will trade over the coming trade events. 

Should these proposals be accepted. I would suggest the user only has one cycle following their reimbursement request being accepted to trade with Burning Man. 

This makes it easier for Burning Man to know who is eligible for a refund and what funds can be used.

> The refund agent need more than 0.8 BTC so there is already not enough for the refund agent if the full 2.6 is spent on other trades. 

There would always be enough for the Refund Agent once the above process is implemented. Only issue I can see is Refund Agent making partial reimbursements. Maybe it would be better if this were to be implemented for Refund Agent to not make any reimbursement at all for trades with donation payouts amounts over 0.5 BTC, and instead leave these to the DAO.

> There might also be more funds that will go to the refund agent but is not yet accounted for.

I think having the 2 cycle limit for people to raise an issue means funds can only be unaccounted for up to a max of 2 cycles. Therefore, not using UTXOs over 0.5 BTC until 3 cycles have passed would negate this. 

> I think the two proposals are really just one issue on how to handle the reimbursement process.

Ok, main point to add other than the above is that I propose:

- @[refund-agent2](https://github.com/refund-agent2) should be reimbursed at the rate they propose in their github issue
- Partially Reimbursed traders should be reimbursed at the rate they propose in their github issue

This would mean the impact to the DAO should be net zero.

Again both should only be able to get this rate if they trade directly with Burning Man within 1 cycle of their reimbursement proposal being accepted.



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