The decentralized exchange Bisq has updated its Software with a completely new user interface (UI) design and the launch of the decentralized autonomous organization BisQ (DAO) on testnet.
With the release of the latest update (v0.9), users can finally bring the DAQ Bisq, a software design that will reward the contributors working on the project, without the supervision of a central authority. This compensation will be performed with the project token called BSQ.
How Bisq works
Bisq is a decentralized cryptocurrency exchange platform that allows users to exchange bitcoins in exchange for legal currencies and other cryptographic assets. Bisq operates on a global P2P network, allowing traders to negotiate with each other without the need for a controlling authority or a third party. The project was developed as a means of providing traders in the cryptographic market with a private, secure and censorship-free medium for the exchange of cryptocurrencies, using bitcoins as a basis for trading with national currencies and other cryptographic activities.
Since Bisq is an open source software, it is possible to download it, install it and configure it to your liking; this involves adding your payment method. The Bisq configuration should be quick as it does not require know-your-customer (KYC) documentation, which is one of its strengths. Once the application is up and running, you can consult the book of offers for existing offers for bitcoin trading.
To keep the funds secure for both the buyer and the seller, Bisq has implemented a guarantee deposit, which is basically the place where the security deposits and traders' trading funds are held in a multi-escrow deposit. -firma 2-of-3. Traders have custody of a key each, while an arbiter holds the third key. Bisq uses a decentralized human arbitration system to resolve commercial disputes. The arbitrators are anonymous users, who trust themselves because of the large bonds deposited in the network and are randomly assigned to cases of dispute by the protocol.
Bisq DAO and BSQ
Having decentralized the resources that manage Bisq, developers want to use their DAO – which is now live on testnet – to decentralize the way it is managed. The DAO, which will determine the strategy, management and operations of the project, uses the BSQ token to reward the contributors that maintain it.
The pieces are arranged on top of the Bitcoin blockchain as colored coins, a concept that shows that a small bitcoin portion represents another value other than bitcoin. When launched on the mainnet, users will be able to use BSQ to pay for Bisq's trading rates, rate future contributions to the project and get compensation for contributions.
More than 25 bitcoins have been donated to the project since it was launched in 2014; these were used to create 2.5 million BSQ tokens. The first BSQ batch will be distributed to the first group of contributors who have worked on the project over the years, based on the project documentation. In this way, the project is putting a part of the future of the software in the hands of those who brought it so far.
"BSQ tokens are used to vote and make decisions on the DAQ Bisq and, initially by distributing BSQ to past contributors, we intentionally establish the Bisq DAQ as a meritocracy where those who have contributed most to the project in the past are those who have more voice on his future. "
New BSQ tokens will be issued whenever a contributor sends a compensation request for BSQ. These tokens will then be destroyed when they are spent to offset the trading fees of users. So, while earning BSQ through a compensation increases its offer, by spending them as trading fees, decreases their total supply. Users can also exchange their BTCs for BSQ on the Bisq platform.
The project contributors will publish the DAO on the mainnet together with the v1.0 version of the project in 2019.