Burning Men - Revision history

Pazza at 17:52, 29 October 2024

2024-10-29T17:52:56Z

Pazza: /* DAO fields */

2024-08-28T21:08:48Z

DAO fields

Pazza: /* Profit fields */

2024-08-28T21:07:35Z

Profit fields

Pazza: /* Burning Men Candidates fields */

2024-08-28T21:06:31Z

Burning Men Candidates fields

Pazza: /* Burning Men Candidates fields */

2024-08-28T21:05:24Z

Burning Men Candidates fields

Pazza: /* Contributors */

2024-08-28T21:03:53Z

Contributors

Pazza: /* Burning Men Candidates fields */

2024-08-28T21:02:05Z

Burning Men Candidates fields

MwithM: No big changes left. Ready for review.

2024-08-28T20:53:04Z

No big changes left. Ready for review.

Show changes

MwithM: /* Receivers of the genesis distribution */ Fix link?

2024-08-28T18:12:32Z

Receivers of the genesis distribution: Fix link?

MwithM: Burning BSQ and receiving BTC

2024-08-28T18:10:37Z

Burning BSQ and receiving BTC

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 '''Burning Men''' is the name given to Bisq contributors who choose to burn BSQ in order to receive bitcoin from Bisq trading activity: [[Trading_fees|Trade fees]] and Delayed payout transactions. It's an evolution of the previous '[[Donation Address Owner|burning man]]' role. The change, implemented since January 2023 in this [https://github.com/bisq-network/proposals/issues/390 proposal], aimed to increase Bisq's decentralization by distributing this role within many contributors. A single burning man could have gone missing, ran away with the BTC before trading them for BSQ and burning these BSQ, or could have been otherwise compromised.<br>
 As each burning men burns an undetermined amount of BSQ as a condition to receive a share of BTC from Trading fees and Delayed payout transactions, trust requirements and single points of failure are almost nonexistent.
 __TOC__

← Older revision		Revision as of 21:08, 28 August 2024
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	* Export to CSV: To see the results by month rather than all time in a CSV file, getting a more granular data.		* Export to CSV: To see the results by month rather than all time in a CSV file, getting a more granular data.

−	If the amount of BSQ being distributed is greater than the amount being burnt then the burning men are generally in profit from their activities.	+	If the amount of BSQ being distributed is greater than the amount being burnt then the burning men are generally in profit from their activities. If the amount of BSQ being distributed is less than the amount being burnt then the burning men are in a loss from their activities.

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 == Profit fields==
-When selecting a burningmen, individual profit stats are displayed. It can be filtered by burning, trading fee and/or DPT eventsand by month or individual events. Looking at monthly profits can be used as an indicator of how many BSQ to burn. Note that it's normal to have a negative profit at the beginning, since shares decay linearly during 24 cycles. A burning man should not expect to regain in one month what will be distributed during a longer period. <br>
+When selecting a burningmen, individual profit stats are displayed. It can be filtered by burning, trading fee and/or DPT eventsand by month or individual events. Looking at monthly profits can be used as an indicator of how many BSQ to burn. Note that it's normal to have a negative profit at the beginning, since receiver shares decay linearly over 12 cycles. A burning man should not expect to regain in one month what will be distributed during a longer period. <br>
 Scrolling down at the _Profit_ table, it's possible to export all burningman data from a contributor by clicking <code>export to CSV</code>.

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 * Issuance share: It's the amount of BSQ compensation each contributor has received over the last 24 cycles, decaying linearly. Recent contributions have a higher weight. It bears maximum receiver share. A burning man can get a receiver share of up to 10 times their issuance share amount, up to a maximum of 11%. A 0.7% percent issuance share will limit the receiver share to 7%.
 * Burned amount: Total amount of BSQ burned by contributor over time
-* Decayed burn amount: Total amount of BSQ burned by the contributor when taking into account the decay their burns have over time. It is essentially represented in percentage terms by the 'issuance share' value and changes every block.
+* Decayed burn amount: Total amount of BSQ burned by the contributor when taking into account the decay their burns have over time. It is essentially represented in percentage terms by the 'receiver share' value and changes every block.
 * Issued amount: Total amount of BSQ issued to a contributor over time.
-* Decayed issued amount: Total amount of BSQ issued to a contributor when taking into account the decay over time. It is essentially represented in percentage terms by the 'receiver share' value.
+* Decayed issued amount: Total amount of BSQ issued to a contributor when taking into account the decay over time. It is essentially represented in percentage terms by the 'issuance share' value.
 == Profit fields==

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 * Contributor name: Always use the same name as per github handle when doing compensation requests to avoid duplicated similar contributors with different names and shares.
 * Burn target: Click the <code>?</code> icon to get more info. Take these numbers as broad estimates and do not use the  one on the right as your cap will be exceeded. Even using the left value could make you reach your cap. Do not make decisions based on what to burn on these numbers alone.
-* Receiver share: It informs about the % chance of receiving a trade fee and % amount of the delayed payout transactions you'll receive. It's updated every block and changes based on who burns BSQ '''and''' the decay over time of the burns made by the burningmen. To protect the DAO from an attack from a malicious contributor who self trades sending their trades to arbitration, the maximum share each contributor can get is 11%, no matter how many BSQ they burn.
+* Receiver share: It informs about the % chance of receiving a trade fee and % amount of the delayed payout transactions you'll receive. It's updated every block and changes based on who burns BSQ '''and''' the decay over time of the burns made by the burningmen. Each BSQ burnt amount decays linearly to zero over 12 months. To protect the DAO from an attack from a malicious contributor who self trades sending their trades to arbitration, the maximum share each contributor can get is 11%, no matter how many BSQ they burn.
 * Issuance share: It's the amount of BSQ compensation each contributor has received over the last 24 cycles, decaying linearly. Recent contributions have a higher weight. It bears maximum receiver share. A burning man can get a receiver share of up to 10 times their issuance share amount, up to a maximum of 11%. A 0.7% percent issuance share will limit the receiver share to 7%.
 * Burned amount: Total amount of BSQ burned by contributor over time

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 To burn BSQ for the BSQ burning man role the current contributor will see their assigned name 'contributor_name' in the [[Burning_Men#Burning_Men_Protocol_UI|Burningmen Protocol UI]]. They can then choose to burn an amount of BSQ and press burn. <br>
-Since ''receiver share'' is capped depending on how many BTC were earned in the last 2 years (decaying linearly) it's important to make sure that the amount of BTC to burn will not exceed the cap. It would be prudent to begin with small amounts and never exceed the lower amount in the ''burn target'' column.
+Since ''Issuance share'' is capped depending on how many BTC were earned in the last 2 years (decaying linearly) it's important to make sure that the amount of BTC to burn will not exceed the cap. It would be prudent to begin with small amounts and never exceed the lower amount in the ''burn target'' column.
 == Receivers of the genesis distribution ==

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 If a contributor has funds from the genesis output(s) in their Bisq wallet they will see their assigned name 'Bisq co founder XX' in the Burning Men Protocol UI (DAO > Proof of Burn > Burning Men). They should chose the BTC address to receive funds and follow the instructions in the [https://github.com/bisq-network/proposals/issues/390#issuecomment-1306075295 github proposal]. <br>
-Burning BSQ will work as described in the second paragraph of [[Burning_men#Contributors]] section.
+Burning BSQ will work as described in the second paragraph of [[Burning_Men#Contributors|Contributors]] section.
 = Burning Men Protocol UI =

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 After burning some BSQ (earned or bought in the BSQ market) they will get a share percentage in the distribution of BTC from Trading fees and Delayed payout transactions. The more value the've provided to Bisq, the more BSQ they are allowed to burn.
-== Considerations for Burningmen ==
+== Considerations before burning BSQ ==
 Burningmen seek profit from burning BSQ, otherwise they would keep their BSQ or sell them for BTC at the market. But profit, coming from estimating the amount of BSQ to burn now to receive a share of future Trading fees and Delayed payout transactions, is not granted. There are many sources of uncertainty:
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 The less competition between Burningmen there is, the more profitable it will be for each of them, and vice versa. The less profitable Burningmen role is, the better for the DAO, as more BSQ is burnt, reducing or containing BSQ supply and therefore pressuring its price up.
-== Burning BSQ ==
+= Burning BSQ and receiving BTC =
-= How to become a burning man =
+When doing their compensation request, a contributor should fill the "Burningman receiving address" with a BTC address to receive the funds to. Once approved, that address will be used for any burning men payouts they receive up until they ever change it in a subsequent approved compensation request. If that field is never completed, an address from Bisq wallet will be used as receiving address. <br>
-= Current Contributors =
+To burn BSQ for the BSQ burning man role the current contributor will see their assigned name 'contributor_name' in the Burning Men Protocol UI (DAO > Proof of Burn > Burning Men). They can then choose to burn an amount of BSQ and pressing burn. It's very important to use the always the same name, as per the github handle, to avoid creating multiple burningmen with similar names. <br>
-If a contributor wants to be a burning man they should choose a bitcoin address to receive the funds to. Ideally an external wallet like, electrum or sparrow. Once they have chosen there address they should follow the instructions [https://github.com/bisq-network/proposals/issues/390#issuecomment-1306075295 posted here].
+Since _receiver share_ is capped depending on how many BTC were earned in the last 2 years (decaying linearly) it's important to make sure that the amount of BTC to burn will not exceed the cap. Start with small amounts and never exceed the lower amount in the _burn target_ column.
-The chosen bitcoin address can then be provided in their next compensation request. This is provided in the 'burningman receiver address (optional)' field.
+== Receivers of the genesis distribution ==
-Once their compensation request has been approved their chosen bitcoin address will also be used for any burning men payouts they receive up until they ever change it in a subsequent approved compensation request.
+If a contributor has funds from the genesis output(s) in their Bisq wallet they will see their assigned name 'Bisq co founder XX' in the Burning Men Protocol UI (DAO > Proof of Burn > Burning Men). They should chose the BTC address to receive funds and follow the instructions in the [https://github.com/bisq-network/proposals/issues/390#issuecomment-1306075295 github proposal]. <br>
-= Past Contributors =
+= Burning Men Protocol UI =
 All the information about the current and past state of the burning men protocol can be found in the Bisq application: DAO > Proof of Burn > Burning Men
 = Terminology =