Decentralized crypto exchange Bisq is planning to launch a decentralized autonomous organization (DAO). Out of all the cryptocurrency projects that describe themselves as decentralized exchanges, the Bisq exchange may live up to the DEX description better than the rest. Originally, the exchange was known as Bitsquare. The Bisq DEX operating since 2016, runs directly on the user’s computer rather than on a hosted site, as done by many of the self-proclaimed DEXs.
The Bisq team realized that it has much more to contribute than just eliminating single points of failure. Hence, it decided to launch DAO, which is essentially software designed to manage compensation for contributors to the project’s code without oversight from any one party. The testnet is line up to go live in November, while the mainnet will be launched later this year.
Decentralized crypto exchange Bisq’s compensation will come in the form of a new cryptocurrency, BSQ. BSQ is a colored coin (essentially Bitcoin) that has been marked to represent some other form of value in a layer above the core protocol. The Bisq DAO will be distributing Bitcoin that has been donated for the project. The Bitcoin donated in this watermarked form will be distributed to those contributors that the community has voted to approve.
The reason Bisq is launching its token BSQ on top of Bitcoin is “security”. The Bisq community does not trust Ethereum developers yet, in creating a secure, bug-free token. The BSQ token is running on Bitcoin, which on the one hand is much difficult to do as the programming language is not quite flexible. Thus it is considered to be more secure, as reported on CoinDesk.
Since crypto exchange Bisq’s DAO is an autonomous, open source and censorship-resistant, it indicates the start of a new ecosystem. The exchange expects many different DAOs emerge to control different platforms. Every DAO has a different mission. For some it may be making as much money as possible for the owners, while other DAOs may be of a cooperative nature where people collaborate via the DAO on the basis of some common goal, as stated in their official blog.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]