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Reputation From Bisq Wiki Jump to navigation Jump to search The security model of Bisq Easy (a Bisq 2 trade protocol) is based on the seller's reputation. As the buyer needs to send the fiat payment first in the trade process, the seller needs to provide reputation so that the buyer can trust the seller to send the bitcoin. Buyers should look to choose sellers with a high reputation for their trades. Sellers should look at how to maximize their reputation to ensure they get more trades. From Bisq 2 version 2.1.1 the maximum recommended trade amount depends on the seller's reputation. The higher their reputation the higher the possible trade amount (up to a ceiling of the bitcoin amount equivalent to 600 USD). Version 2.1.1 also introduces a change in the reputation score calculation, so that burned BSQ and bonded BSQ get twice their value in the course of the first year. The reputation section can be found on the left hand menu in Bisq 2 Contents 1 Reputation based trade limits 2 Minimum and maximum trade amounts 3 Minimum required reputation score 4 Transition and backward compatibility with prior versions 5 Reputation score star system 6 Why is Reputation important for sellers 7 How to build reputation 7.1 Burning BSQ 7.2 Setting up a BSQ bond 7.3 Importing the Account Age from Bisq 1 7.4 Importing the Signed Account Age from Bisq 1 8 Reputation Simulation Tool 9 What happens when a user profile ID is banned? Reputation based trade limits A seller can take offers up to the amount derived from their reputation score. The formula is: `Reputation score / 200 = max. trade amount in USD`. In other words, for each USD the seller needs 200 reputation points. A reputation score of 30000 enables trades up to 150 USD (converted to the chosen fiat currency). For small trade amounts of the value 25 USD and below, this restriction is lifted. This is motivated by the lower risk of such small amounts and to give users more flexibility. The reputation based trade limits means a buyer creating an offer can be sure the taker (seller) has an adequate reputation score. In case the offer allows amounts below 25 USD anyone with low or no reputation can take the offer. Maker's who do not want to allow users with no reputation to be able to take their offer should create offers higher than 25 USD. A seller creating an offer will get shown the max amount which is covered by their reputation score. They still can create offers with higher amounts, but a taker will get displayed a warning about the potential risks. Minimum and maximum trade amounts Prior to v2.1.1 the minimum and maximum trade amounts were set to 0.0001 - 0.01 BTC. With v2.1.1 we use the fixed fiat amount (independent of Bitcoin price) of 6 USD - 600 USD (converted to the chosen currency). This avoids fluctuations in case of price volatility. The minimum and maximum trade amounts for Bisq 2 Easy are between 6 USD and 600 USD or your chosen fiat equivalent Minimum required reputation score Prior to v2.1.1 users could set a minimum required reputation score for sellers in the settings, or use the recommended default value (30000). This has been removed in v2.1.1. as the amount based approach is a better way to handle risk. Bisq will give you a warning if you try and trade with a user with less than the required reputation score. Transition and backward compatibility with prior versions As long there are users who run versions prior to v2.1.1. we need to deal with some backward compatibility cases. An offer created by a version prior to 2.1.1 can be taken by users of v2.1.1 up to 25 USD even the reputation score is insufficient as we have for such relative small amounts the requirements relaxed. In case a maker who have set the min. required reputation score to a higher level as the taker of the offer has, can reject that trade without risking penalty. The mediator can assist in doubt. Buy offers created with v2.1.1 have set the min. required reputation score to 30000 independent of the users setting (as that has been removed). Thus sellers still using a version lower than v2.1.1. need to have at least 30000 reputation score to take that buy offer. Reputation score star system To make it easier for user's to compare the reputation scores of different traders, Bisq displays reputation scores as stars (0-5 stars). To achieve this users' total reputation scores are compared to other scores in the network and ranked and normalized to a value between 0 and 1. The user with the highest ranking will have a value of 5 stars. The user with the lowest ranking will have a value of 0 stars. The user profiles only stay for 2 weeks in the network in case a user is not active. Thus their associated reputation will disappear with their profile if being inactive for 2 weeks. This has an impact on the relative reputation score of all other users. For instance if the user with the highest reputation is inactive and gets removed from the network the next user with the highest reputation will become the highest ranked with 5 star. Once a inactive user becomes active again their reputation score will be taken into account in the relative ranking. One could phrase it as: The reputation score star system is the relative ranking compared to the reputation of the active users in the network. Bisq converts a seller's reputation score into an easy to view star system. This makes it easy for buyers to see at a glance which are the most reputable sellers. The sellers with the highest reputation have 5 stars and the sellers with the lowest reputation will have 0 stars. Why is Reputation important for sellers Bitcoin buyers send the fiat payment to the sellers prior to receiving the bitcoin. Therefore it is important for bitcoin sellers to have a good reputation to help establish trust with their potential trade partners. It is expected that users that want to gain reputation to be bitcoin sellers on Bisq Easy will be experienced Bisq users that can provide buyers with a positive experience. Selling bitcoin on Bisq Easy is expected to be profitable for the sellers in that they will likely choose to sell bitcoin over market price. How to build reputation There are currently 4 options for creating reputation: Burning BSQ Setting up a BSQ bond Importing the Account Age from Bisq 1 Importing the Signed Account Age from Bisq 1 The total score is calculated as sum of the individual reputation sources/events. The reputation scores of users' will change over time due to: Reputation gained from bonding BSQ is lost when the bond is unlocked. Users can burn or bond BSQ repeatedly. Users can import signed accounts or aged accounts to replace previous gained reputation scores. Also the representation of the reputation as stars next to the user profile will also change over time in respect of the score of other users profile IDs. It is expected that there will be some competition between sellers to achieve higher reputation scores to get more trades from bitcoin buyers interested in trading with account with the most reputation. You can access all 4 methods of increasing your reputation from the Bisq 2 reputation section found in 'User Options' > 'Reputation' Burning BSQ A user who wants to improve their reputation on the Bisq Easy trade protocol can burn BSQ. The more BSQ that is burned the better the reputation score the user would get. The minimum amount of BSQ that can be burnt is 5.46 BSQ (dust limit). The reputation score achieved by burning BSQ increases linearly over the first twelve months. At the end of the 12 months the reputation score gained will be double what it was initially. This is to give an advantage to sellers over the long term. The value gained by burning BSQ persists over time. Reputation scores achieved from burning BSQ is cumulative. It can be assumed that regular burning (e.g. each week or month) is a form of work and represents activity by the user resulting in a higher reputation score. Data about the burned BSQ gets published automatically by the oracle node. If a user gets banned by a moderator they will lose the reputation value that they gained from burning the BSQ as the reputation is linked to their profile and a banned profile cannot be used anymore. Follow these steps to burn BSQ for reputation: Select the user profile for which you want to attach the reputation Copy the "profile ID" Open Bisq 1 and go to "DAO/PROOF OF BURN" and paste the copied value into the "pre-image" field Enter the amount of BSQ you want to burn Publish the Burn BSQ transaction After blockchain confirmation your reputation will become visible in your profile On the bisq 2 app you will find this same information under 'User Options' > 'Reputation' Burning BSQ has the highest impact on the reputation score. For every BSQ burnt the user receives a reputation score of 100. This amount will increase linearly over the first twelve months until it doubles. For example if a user burns 100 BSQ their reputation score will be increased by 10,000 immediately, and by the end of the 12 months it will have increased to 20,000. Reputation obtained by burning will persist with that users profile. To increase their reputation further a user can burn multiple times. The scores received are cumulative. Setting up a BSQ bond Similar to Burn BSQ but using refundable BSQ bonds. BSQ needs to be bonded for a minimum of 50,000 blocks (about 1 year). During this time the BSQ is unavailable to the user. After 50,000 blocks the bond can be unlocked and the BSQ is available again to the user. The reputation score achieved by bonding BSQ increases linearly over the first twelve months. At the end of the 12 months the reputation score gained will be double what it was initially. This is to give an advantage to sellers over the long term. The value gained by bonding BSQ persists until the time the bond is unlocked. Reputation scores achieved from bonding BSQ is cumulative. It can be assumed that regular bonding (e.g. each week or month) is a form of work and represents activity by the user resulting in a higher reputation score. A bond can be confiscated (destroyed by a Bisq DAO vote). This would only be done if a bond holder was scamming users. To confiscate a scammers bond requires high quorum at DAO voting, thus its more risky that the confiscation might fail. Data about bonded BSQ gets published automatically by the oracle node. Follow these steps to bond BSQ for reputation: Select the user profile for which you want to attach the reputation Copy the "profile ID" Open Bisq 1 and go to "DAO/BONDING/BONDED REPUTATION" and paste the copied value into the "salt" field Enter the amount of BSQ you want to lockup and the lock time (50000 blocks) Publish the lockup transaction After blockchain confirmation your reputation will become visible in your profile On the bisq 2 app you will find this same information under 'User Options' > 'Reputation' Bonding BSQ has a high impact on the reputation sc