BSQ - Revision history

Strayorigin: Cleanup page: Rewrite intro for clarity, fix links, standardize spelling.

2025-04-22T03:56:04Z

Cleanup page: Rewrite intro for clarity, fix links, standardize spelling.

MwithM: Add swap BSQ link

2022-01-21T09:19:13Z

Add swap BSQ link

Plebeian9000 at 20:47, 6 April 2021

2021-04-06T20:47:54Z

Plebeian9000: /* BSQ Issuance */

2021-04-06T20:44:38Z

BSQ Issuance

Plebeian9000: /* BSQ Trading */

2021-04-06T20:42:53Z

BSQ Trading

Plebeian9000: thorough edit

2021-04-06T20:41:29Z

thorough edit

Plebeian9000: basic editing

2021-04-06T20:35:44Z

basic editing

MwithM: /* BSQ Token */ use mempool to verify BSQ

2021-03-14T11:12:06Z

BSQ Token: use mempool to verify BSQ

Plebeian9000 at 03:55, 6 January 2021

2021-01-06T03:55:20Z

MwithM: /* BSQ Wallet */ add buy BSQ link

2020-12-11T10:07:36Z

BSQ Wallet: add buy BSQ link

@@ Line 1: / Line 1: @@
-'''BSQ''' colored bitcoin tokens are the unit of account for the Bisq DAO. The easier way to get BSQ is [[BSQ_swaps|swapping]] it for BSQ at Bisq.
+'''BSQ''' is the utility token of the Bisq [[Introduction to the DAO|DAO]], used for governance participation and optionally paying [[Trading fees|trading fees]] at a discount. Technically, it is implemented as '''colored''' bitcoin tokens. This means BSQ functions as a token layer on the Bitcoin blockchain, where specific satoshis represent BSQ units recognized as distinct from regular bitcoin '''only within the Bisq software wallet'''. The easiest way to obtain BSQ via trade is through [[BSQ_swaps|BSQ swaps]].
 __TOC__
@@ Line 6: / Line 6: @@
 {{BSQ_Token_Intro}}
-=== BSQ v BTC ===
+You can observe the difference between a standard BTC transaction and a BSQ transaction (which is also a BTC transaction but interpreted differently by Bisq) using block explorers:
+* Example: [https://mempool.space/tx/0243f99c848de4f53cb29157d10bf1cdbfcf4219f84e9997dd3cac9244ab7242 View sample TX on a standard BTC block explorer]
-You can see how the characteristics of a BSQ transaction differ by viewing them side-by-side on a BTC explorer and a BSQ explorer:
+* Example: [https://mempool.space/bisq/tx/0243f99c848de4f53cb29157d10bf1cdbfcf4219f84e9997dd3cac9244ab7242 View the same sample TX on Bisq's BSQ explorer]
 === BSQ Trading ===
-Because BSQ tokens are only recognized by Bisq software, BSQ trading can only take place in Bisq software.
+Because BSQ tokens are only recognized as having special properties by Bisq software, BSQ trading primarily takes place '''within the Bisq application''' using [[BSQ_swaps|BSQ swaps]].
-While BSQ is just bitcoin, it should only be stored in a Bisq wallet.
+While BSQ fundamentally consists of bitcoin satoshis, it requires special handling. It should '''only be stored in and sent from the built-in Bisq wallet'''.
-{{Admonition_Warn|'''Please do not try to send BSQ to a non-Bisq wallet''', or to otherwise create your own BSQ transactions. The rules to form a valid BSQ transaction are rather complex, and even the slightest error can result in invalid BSQ. Even the [[DAO_technical_overview|technical overview]] does not cover every single detail—the only complete reference is the source code. Also note that future code changes may break custom transactions or implementations.
+{{Admonition_Warn|'''Do not attempt to send BSQ to a non-Bisq wallet''' (e.g., another Bitcoin wallet or an exchange) or create custom BSQ transactions manually. The rules for valid BSQ transactions are complex and enforced by the Bisq software. Errors can lead to the BSQ value being unrecognized or lost (becoming plain satoshis). The [[DAO_technical_overview|technical overview]] provides details, but the source code is the ultimate reference. Future software updates may also break custom implementations. '''Bisq cannot provide support for recovering BSQ sent outside the Bisq wallet ecosystem.'''}}
 === BSQ Issuance ===
-After the genesis transaction in April 2019, BSQ can only be created through an issuance transaction (compensation request or reimbursement request). See more on BSQ's [[Introduction_to_the_DAO#Overview|issuance and burn dynamic]].
+BSQ was initially created in a genesis transaction in April 2019. Since then, new BSQ is '''only created through the Bisq DAO''' via approved compensation or reimbursement requests submitted by contributors. BSQ is 'burned' (destroyed) when used to pay trading fees. Learn more about the [[Introduction_to_the_DAO#Overview|BSQ issuance and burn dynamic]].
-{{Admonition_Note|'''The BSQ token is not associated with any kind of initial coin offering (ICO) or capital-raising initiative.''' It’s merely a tool to decentralize the governance of the already-functional Bisq exchange network, which has been operating in production since April 2016.}}
+{{Admonition_Note|'''BSQ is not an ICO token.''' It was never sold to raise capital. It functions purely as a utility token to enable decentralized governance and funding for the Bisq network, which has been operational since 2016.}}
 == BSQ Wallet ==
-BSQ is stored in a Bitcoin wallet, but the Bisq software takes several measures to keep BSQ and BTC separate to prevent mixing the two by accident. On disk, BTC and BSQ wallets are stored in separate files. In the Bisq interface, BSQ wallets are prefixed with a 'B' to prevent users from mistakenly using BSQ as BTC.
+BSQ is stored within the user's standard Bisq Bitcoin wallet file but is managed separately by the software to prevent accidental mixing with regular BTC.
+* '''Separate Balances:''' The UI shows distinct BTC and BSQ balances.
-As an additional protection measure, Bisq wallets use a special BIP-44 [[Restoring_your_wallet_from_seed#Restoring_to_a_non-Bisq_wallet|derivation path]] that other wallets won’t understand.
+* '''Separate Files (Internal):''' Wallet data for BTC and BSQ are stored in separate internal files within the [[Data directory]].
-For user convenience, the built-in Bisq wallets for BTC and BSQ share the same seed.
+For user convenience, the BTC and BSQ wallets within Bisq share the same seed phrase.
-More details are in the [[DAO user reference]] and [[DAO technical overview]]. Also see how to [[buy BSQ]].
+More technical details can be found in the [[DAO user reference]] and [[DAO technical overview]]. See also [[How_to_buy_BSQ_on_Bisq|how to buy BSQ]] using swaps.
 [[Category:DAO]]

← Older revision		Revision as of 09:19, 21 January 2022
Line 1:		Line 1:
−	'''BSQ''' colored bitcoin tokens are the unit of account for the Bisq DAO.	+	'''BSQ''' colored bitcoin tokens are the unit of account for the Bisq DAO. The easier way to get BSQ is [[BSQ_swaps\|swapping]] it for BSQ at Bisq.

	__TOC__		__TOC__

@@ Line 37: / Line 37: @@
 For user convenience, the built-in Bisq wallets for BTC and BSQ share the same seed.
-More details are in the [[DAO_technical_overview|technical overview]]. Also see how to [[buy BSQ]].
+More details are in the [[DAO user reference]] and [[DAO technical overview]]. Also see how to [[buy BSQ]].
 [[Category:DAO]]

@@ Line 27: / Line 27: @@
 After the genesis transaction in April 2019, BSQ can only be created through an issuance transaction (compensation request or reimbursement request). See more on BSQ's [[Introduction_to_the_DAO#Overview|issuance and burn dynamic]].
-{{Admonition_Note|The BSQ token is not associated with any kind of initial coin offering (ICO) or capital-raising initiative. It’s merely a tool to decentralize the governance of the already-functional Bisq exchange service. As of December 2018, Bisq has facilitated over 19,000 trades without major incident since it went into production in April 2016.}}
+{{Admonition_Note|'''The BSQ token is not associated with any kind of initial coin offering (ICO) or capital-raising initiative.''' It’s merely a tool to decentralize the governance of the already-functional Bisq exchange network, which has been operating in production since April 2016.}}
 == BSQ Wallet ==

@@ Line 19: / Line 19: @@
 While BSQ is just bitcoin, it should only be stored in a Bisq wallet.
-{{Admonition_Warn|Please '''do not try to send BSQ to a non-Bisq wallet''', or to otherwise create your own BSQ transactions. The rules to form a valid BSQ transaction are rather complex, and even the slightest error can result in invalid BSQ. Even the [[DAO_technical_overview|technical overview]] does not cover every single detail—the only complete reference is the source code. Also note that future code changes may break custom transactions or implementations. Bisq will NOT provide support for any such cases.}}
+{{Admonition_Warn|'''Please do not try to send BSQ to a non-Bisq wallet''', or to otherwise create your own BSQ transactions. The rules to form a valid BSQ transaction are rather complex, and even the slightest error can result in invalid BSQ. Even the [[DAO_technical_overview|technical overview]] does not cover every single detail—the only complete reference is the source code. Also note that future code changes may break custom transactions or implementations.
 === BSQ Issuance ===

@@ Line 5: / Line 5: @@
 == BSQ Token ==
-A BSQ token is a '''coloured coin''' on the Bitcoin blockchain. A single BSQ token is defined to be 100 satoshis with some additional properties that identify it as BSQ in Bisq software.
+{{BSQ_Token_Intro}}
 === BSQ v BTC ===

@@ Line 7: / Line 7: @@
 * the owner of the satoshis is endowed with power to participate in various Bisq governance functions
-See it for yourself: [https://blockstream.info/tx/0243f99c848de4f53cb29157d10bf1cdbfcf4219f84e9997dd3cac9244ab7242/ here’s a BSQ transaction on an ordinary block explorer], and here’s [https://explorer.bisq.network/tx.html?tx=0243f99c848de4f53cb29157d10bf1cdbfcf4219f84e9997dd3cac9244ab7242 that same transaction on a BSQ block explorer].
+See it for yourself: [https://blockstream.info/tx/0243f99c848de4f53cb29157d10bf1cdbfcf4219f84e9997dd3cac9244ab7242/ here’s a BSQ transaction on an ordinary block explorer], and here’s [https://explorer.bisq.network/tx.html?tx=0243f99c848de4f53cb29157d10bf1cdbfcf4219f84e9997dd3cac9244ab7242 that same transaction on a BSQ block explorer]. Use [https://mempool.space/bisq mempool.space] to verify BSQ transactions.
 The value of a BSQ token is determined by the market as stakeholders [[buy_BSQ | buy]] and sell tokens to perform various functions in the DAO. Because BSQ tokens are only recognized by Bisq software, BSQ trading can only happen in Bisq software.

@@ Line 31: / Line 31: @@
 BSQ is stored in a Bitcoin wallet, but the Bisq software takes several measures to keep BSQ and BTC separate to prevent mixing the two by accident. On disk, BTC and BSQ wallets are stored in separate files. In the Bisq interface, BSQ wallets are prefixed with a 'B' to prevent users from mistakenly using BSQ as BTC.
-As an additional protection measure, Bisq wallets use a special BIP44 derivation path that other wallets won’t understand.
+As an additional protection measure, Bisq wallets use a special BIP44 [[Restoring_your_wallet_from_seed#Restoring_to_a_non-Bisq_wallet|derivation path]] that other wallets won’t understand.
 For user convenience, the built-in Bisq wallets for BTC and BSQ share the same seed.