Bisq DAO Myths Tweetstorm

bisq-dao-myths-tweetstorm.txt

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It's fair for you to be skeptical about anything called a 'DAO' or a new 'token'.

No worries, we would be too. Here's a THREAD to dispel myths and misconceptions of the Bisq DAO and BSQ token.

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FIRST THINGS FIRST: WHY?

Decentralized software is great, but what's the point if the team in charge of the software is still a single point of failure?

The Bisq DAO and BSQ token are mechanisms to decentralize Bisq's governance.

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NO ICO

Bisq has bootstrapped itself to facilitate 19,000+ trades in the past 2.5 years. It makes real revenue *right now*.

The BSQ token is NOT a mechanism to raise startup capital. 

Again, the point is to remove central points of authority from Bisq's governance.

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BSQ IS JUST BITCOIN

Let's get this out of the way right now: the BSQ token is just colored bitcoin.

It piggybacks on the Bitcoin protocol to provide a mechanism for Bisq users to exert control over the Bisq project in ways that would not be possible with plain BTC.

https://i.imgur.com/C0xfyqH.png

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BSQ IS JUST BITCOIN (PROOF)

You can see BSQ transactions on a Bitcoin block explorer (testnet for now): 
https://blockstream.info/testnet/tx/92df3183d3c60983492983882642145ac0ab8ef93cda07ff57d1f810e34003f6/

But you'll see more detail on a BSQ block explorer (as it understands the additional 'colored' properties):
https://explorer.bisq.network/tx.html?tx=92df3183d3c60983492983882642145ac0ab8ef93cda07ff57d1f810e34003f6

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BSQ IS NOT JUST FOR LOWER TRADING FEES

If it were, it would have no reason to exist.

BSQ tokens enable holders to request compensation, make proposals, and post bonds to manage & operate the Bisq project.

https://i.imgur.com/C0xfyqH.png

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BSQ IS HELD IN A BTC WALLET

Again, because BSQ is just bitcoin, it's held in a bitcoin wallet.

The Bisq UI prefixes BSQ wallet addresses with a 'B' and displays BSQ as distinct from BTC so the user is never confused about what they have and what they're spending.

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BSQ USAGE IS VOLUNTARY

You can continue paying trading fees with BTC if you wish and totally ignore the DAO and BSQ.

But we hope you don't—the Bisq DAO effectively reroutes all project revenue from BTC to BSQ. 

BTC fees will not go to contributors, but BSQ fees will!

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BUYING BSQ PAYS CONTRIBUTORS DIRECTLY

Contributors get new BSQ tokens for their work on the Bisq project. They sell their tokens to traders for BTC. Traders then pay for trades with BSQ. 

**In this way, revenue is earned AND distributed without any central authority.**

https://i.imgur.com/jX2YKfD.png

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BSQ TOKENS ARE NOT FOREVER

Another crucial difference from ICO paradigm: BSQ issuance is not a 1-time event with arbitrary quantity. 

BSQ is constantly created when work is done to maintain Bisq, and BSQ is constantly destroyed when service is consumed to use Bisq.

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BSQ FEES WILL BE 90% LOWER THAN BTC FEES

To incentivize traders to use BSQ. 

Since contributors will only be paid through BSQ, Bisq will need YOU (users) to embrace BSQ to survive.

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YOU PROBABLY WON'T HOLD MUCH BSQ

BSQ exists to enable the Bisq DAO—fund Bisq's operations and enable its governance—not to speculate for Lambo riches.

We imagine most users will buy BSQ and immediately burn it to pay trading fees.

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BSQ CAN ONLY BE BOUGHT WITH BTC

At the moment, BTC must take 1 side of every trade on Bisq. So to buy BSQ, you'll need to pay in BTC.

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DAO IS JUST A GENERIC TERM

The term 'DAO' carries baggage, but it can be considered a generic term for a decentralized governance structure sanctioned by software instead of by a state.

There are big differences between Bisq's DAO and other DAOs, but it fits that definition.

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CODE IS NOT LAW

The Bisq DAO is not a protocol like Bitcoin or TCP/IP. 

It's a system built atop protocols to help people run a service for other people.

Mechanisms are in place to handle exploits, but hard forks are on the table to prevent disasters.

https://docs.bisq.network/dao/specification.html#predefined-policy-how-to-deal-with-unexpected-situations