[bisq-network/proposals] Increase BTC trading fee to 1% of trade amount (Issue #365)

Ape Mithrandir notifications at github.com
Thu Mar 24 10:32:12 CET 2022


Trying to charge a higher fee to large volume traders can be tricky:
- They are engaging in high volume purely to make a profit (as a market maker)
- They will respond by widening their bid-ask spreads to reflect the increased fees
- Wider spread means less trades
- This can lead to a drop in taker fees and overall fee revenue

CEX's often waive fees for high volume traders (market makers) all together so that they can improve liquidity. Considering that Bisq greatly needs liquidity I wouldn't recommend trying to raise fees on high volume traders. 
If you examine carefully the links I provided, I would say that Bisq is roughly in-line with the other venues in terms of fees.

Unfortunately, there are no easy wins to be made from adjusting the fee structure. Instead the increased revenue will have to come from hard fought increases in adoption and subsequently improved volume.

Are we currently struggling to cover costs with the existing revenue? Is there a great desire to increase fees further? I think one should always assume that an increase in fees without an increase in adoption will always result in lower volume and thus the assumed increase in revenue from such fee increases are often overestimated.

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