Peer-to-peer (P2P) decentralized exchange Bisq has implemented a software upgrade on its brand new User Interface (UI) design while it also launches the Bisq Decentralized Autonomous Organization (DAO) on testnet.
With the launch of the newest v0.9 update, users can now trial the Bisq DAO, a software design aimed at incentivizing contributors working on the project, minus central authority supervision. The reward system is expected to be executed using the initiative’s token, dubbed as BSQ.
Bisq’s decentralized crypto exchange platform also enables customers to trade Bitcoins in exchange for fiat currencies and other digital assets. Running on a worldwide P2P network, Bisq gives traders an opportunity to transact with each other without requiring a third-party oversight authority. The initiative has been created to provide crypto traders with a private, secure, and censorship-free way of exchanging digital currencies, with Bitcoin serving as a base for exchange with fiat currencies and other digital assets.
Because Bisq is a type of open-source software, users can download, install, and even configure it according to their preference. This also involves integrating their payment method. Since it does not need know-your-customer (KYC) certifications, configuring Bisq will be fast. This is perhaps one of its strongest attributes. Once in full operation, users can check the offer book for other offers to trade Bitcoin.
To assure the safety of funds, Bisq has integrated an escrow, where traders’ security deposits and trading funds are kept through a 2-of-3 multi-signature escrow. Each trader keeps a key while a third key is held by an arbitrator. To be able to settle trade disputes, Bisq utilizes a decentralized human arbitration system. Users, who possess large bond deposits on the network can also serve as arbitrators on an anonymous capacity. These arbitrators are selected randomly to handle case disputes on the protocol.
Developers want to utilize Bisq’s DAO, which is now live on a testnet, to decentralize its management. Meanwhile, the DAO, which is set to determine the strategy, management, and operations of the initiative, utilizes the BSQ token to incentivize contributors handling its maintenance.
Functioning as colored coins, the tokens are placed on top of Bitcoin’s Blockchain. This concept demonstrates that a tiny fraction of Bitcoin represents a different value other than Bitcoin. Once released on the mainnet, users can use the BSQ to pay for Bisq trading fee, vote on future contributions to the venture, and receive rewards for contributions.
Since its introduction in 2014, more than 25 Bitcoins have already been donated to the initiative. These Bitcoins have been used to produce 2.5 million BSQ tokens. According to the project’s document, the first set of BSQ tokens are to be allocated to the first batch of contributors who have been working on the project for years. Through this, the project is entrusting a fraction of the software’s future to those who are responsible for the project’s progress.
The document states:
“BSQ tokens are used to vote on and make decisions about the Bisq DAO itself, and by initially distributing BSQ to past contributors, we intentionally establish the Bisq DAO as a meritocracy in which those who have contributed the most value to the project in the past are those who have the most say over its future.”
Every time a contributor submits an incentive request for BSQ, new BSQ tokens will be released. Once they are spent to offset users’ trading fees, the same tokens will be destroyed. This goes to show that although earning BSQ via compensation increases its supply, using them to pay for trading fees decreases their total number. In addition, users also have the ability to exchange their BTC for BSQ on the Bisq platform.
The initiative’s contributors are expected to release the DAO on the mainnet, together with the project’s v1.0 this year.