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From YouTube: Chris Beams - HOW TO BOOTSTRAP A DAO | HCPP17
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CHRIS BEAMS
We’ve heard a lot about decentralized autonomous organizations over the last several years, but thus far few have become fully operational. In this talk we’ll look at the practical considerations of designing and building a real-world DAO, using the Bisq exchange and its forthcoming DAO as a case study.
TALK: HOW TO BOOTSTRAP A DAO
We’ve heard a lot about decentralized autonomous organizations over the last several years, but thus far few have become fully operational. In this talk we’ll look at the practical considerations of designing and building a real-world DAO, using the Bisq exchange and its forthcoming DAO as a case study.
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A
Okay,
so
today,
I'm
gonna
talk
a
bit
about
this
peer-to-peer
decentralized,
Bitcoin
exchange,
so
how
many
are
familiar
with
bisque?
How
many
would
say
they're
very
familiar
with
bisque
yeah?
Maybe
they
just
don't
want
to
say
right,
so
I'm
gonna
talk
about
what
bisque
is
why
it
exists.
Why
did
we
build
it,
how
it
works
and
before
I
do
that
lets
me
hi,
so
I
my
background
isn't
in
cryptography,
it
isn't
in
distributed
systems.
A
A
In
the
meantime,
by
the
way,
I've
also
spent
a
lot
of
time
with
larger,
open
source
organizations
helping
to
helping
to
organize
how
they
work,
write,
distributed
teams
working
all
over
the
world.
So
lots
of
work
with
you
know,
github
processes
and
so
on,
and
that
background
has
kind
of
fed
into
how
we've
designed
this
Dao.
So
we'll
hear
lots
more
about
that
in
a
moment.
A
Ok,
so
what
is
bisque
bisque
is
often
described
as
a
decentralized
or
a
peer-to-peer,
Bitcoin
exchange,
and
that's
all
true,
but
because
there
are
many
ways
to
design
such
a
system
and
because
those
words
like
decentralization
can
mean
different
things
to
different
people,
it's
better
to
describe
bisque
in
terms
of
its
component
parts.
So
first
bisque
is
a
cross-platform
desktop
application.
It
allows
anybody
to
buy
and
sell
Bitcoin
in
exchange
for
national
currencies
and
for
other
crypto
currencies.
A
Thirdly,
it's
a
peer-to-peer
network
formed
when
bisque
applications
discover
connect
to
and
work
with,
each
other
to
implement
the
best
protocol,
and
that
network
is
fully
peer-to-peer
in
the
sense
that
there's
no
centralized
no
centrally
control
servers,
there's
no
single
points
of
failure,
so
all
together,
bisque
is
a
desktop
application,
a
trading
protocol
and
a
peer-to-peer
network.
They
all
work
together
to
form
a
decentralized
exchange
and
finally,
bisque
is
free
software.
It's
all
licensed
under
the
a
GPL
and
bisque
is
just
software
right.
There's
no
company,
there's
no
startup,
there's
no
foundation.
A
It's
just
code
in
a
github
repository
and
a
github
organization
with
individual
people
collaborating
together
to
build
it.
That's
it
it's
becoming
a
Dao
right,
we'll
see
what
that's
all
about
a
decentralized
autonomous
organization
for
anybody
who
doesn't
know
the
acronym
we'll
get
to
that
in
a
moment.
Why?
Why
did
we
build
it?
Why
does
bisque
exist?
A
Well,
bisques
mission
is
to
provide
a
secure,
private
and
sensed
and
censorship
resistant
way
to
exchange
Bitcoin
for
national
currencies
and
other
crypto
currencies
over
the
Internet
right
every
one
of
those
words
matter.
There
are
lots
of
ways
to
exchange
Bitcoin
in
person
and
over
the
internet
that
are
not
decentralized
or
less
private
or
less
secure,
etc,
but
those
words
can
mean
different
things
to
different
people,
so
let's
define
them
right
when
we
say
secure
we're
talking
about
the
safety
of
users
funds.
A
Today,
most
Bitcoin
exchanges
are
centralized,
and
that
requires
users
to
store
their
Bitcoin
for
at
least
some
amount
of
time
on
the
exchange
server
and
when
thousands
of
users
are
doing
this
simultaneously.
That
creates
extreme
incentives
for
those
servers
to
be
hacked
for
those
bitcoins
to
be
stolen,
and
we
all
know
the
greatest
hits
here.
It
happens
time
and
time
and
time
again
right
every
year,
for
the
last
five
years
at
least,
we've
had
major
hacks
with
otherwise
trusted
exchanges
right.
The
beatings
will
continue
so
private.
A
By
private
we
mean
you
control
your
own
information,
so
we're
referring
to
users
ability
to
control
access
to
their
own
data
today,
most
centralized
exchanges
require
you
to
create
an
account
to
divulge
personally
identifying
information
with
that
exchange
and
in
turn,
those
exchanges
then
link
your
trading
activity
to
that
identity
right.
This
practice
creates
extreme
risks,
risks
that
your
personal
details,
your
financial
information,
will
be
stolen,
leaked
or
otherwise
used
against
your
own
best
interests.
A
Probably
a
lot
of
us
know
this
story
right.
The
IRS
issue,
the
so-called
John
Doe
summons,
to
coinbase,
asking
for
all
of
the
information
about
all
of
the
users
on
coinbase
from
2013
to
2015,
and
fortunately
that's
getting
worked
back.
You
know,
but
this
is
exactly
what's
at
stake
right
when
we
give
up
our
personal
information.
A
If
they
don't
comply
those
those
restrictions,
those
regulations
tend
to
include
restrictions
on
who
can
trade,
what
can
be
traded
and
almost
always
require
include
requirements
to
collect
personal
information
as
we
described
earlier
right.
So
we
need
to
look
no
further
than
recent
news
about
China
to
see
what
that
can
look
like
when
by
Fiat
exchanges,
get
shut
down
or
told
what
to
do
it's
usually
not
so
over
the
top
right.
That's
you
know
you
must
stop
doing
business,
but
much
more
often
it's
more
subtle
right.
A
A
Let's
say
imagine
you
want
to
buy
Bitcoin
in
exchange
for
US
dollars
in
Bitcoin
in
this
terminology:
you're
a
buyer
right
Bitcoin
in
exchange
for
US
dollars,
so
in
this
terminology,
you're
a
buyer
of
Bitcoin,
looking
for
a
seller
of
Bitcoin
who
will
accept
US
dollars
as
payment.
If
you
were
going
to
complete
a
trade
like
that
using
bisk
you'd
follow
a
series
of
steps
similar
to
these
all
right.
You
download
this
you'd
run
it
on
your
computer,
you'd
configure
bisque
with
your
payment
details.
Now.
A
This
is
not
registering
your
personal
information
with
a
centralized
service.
This
is
putting
information
into
bisque,
where
it's
only
going
to
be
sitting
on
your
computer
encrypted
write
about
ways
that
you
can
pay
in
u.s.
dollars
in
this
case
right,
so
you
have
an
okay
pay
account
or
you
have
a
Zell
account
or
whatever
it
may
be.
That's
going
to
be
information,
that's
necessary
for
your
counterparty
to
know
so
that
it
when
you're
paying
them
for
their
Bitcoin.
A
They
can
verify
okay,
that
came
from
the
correct
zel
accounts
or
whatever
it
may
be,
all
right,
so
you'd
configure
disk
you'd,
then
browse
bisques
offer
book
looking
for
other
sell
offers
that
have
already
been
created
by
sellers
who
already
want
to
sell
you
a
Bitcoin
and
then
maybe
you
take
their
offers.
You
could
also
place
your
own
offer
to
buy,
but
let's
say
there's
an
offer
to
sell
that
you're
happy
with.
A
So
then-
and
this
is
the
part
where
you
see
my
slightly
incomplete
slide
deck-
that
I
was
finishing
right
up
until
the
last
moment,
but
never
mind
that
it
works
just
as
well.
So
you
would
then
send
those
dollars
from
whatever
account
it
is
that
you
have
right
Zell
in
this
case
or
okay
pay
or
some
bank
transfer
or
wire
transfer
or
whatever
it
is,
and
then
in
bisque
you
would
click
the
payments
initiated
button.
You
tell
your
this
client
I
started
the
payments.
A
On
the
other
side,
the
seller
is
going
to
get
notified
of
that
the
seller
is
going
to
say.
Okay,
your
counterparty
said
that
they
initiated
payment.
Let's
wait
until
the
payment
arrives
waiting
right,
however
long
Zell
takes
or
however
long
a
wire
transfer
takes.
Some
payment
systems
like
faster
payments
in
the
UK
are
pretty
fast
right
might
happen
in
a
in
ours
right.
Some
are
really
slow
might
take
days,
but
that's
your
choice.
You
and
your
counterparty.
How
you
want
to
do
the
payment
right,
so
we
wait,
however
long
it
takes.
A
So
here's
how
it
might
be
obvious
how
bisque
is
different
already
right,
but
bisque
is
quite
different
than
trading
on
a
centralized
exchange.
So
here's
some
of
the
ways
right,
no
automatic
order,
magic
on
a
centralized
exchange.
Just
login,
you
say:
I
want
to
buy
a
half
a
Bitcoin
and
it's
done
right
and
that
half
a
Bitcoin
might
have
come
from
any
number
of
of
you
know:
counterparties
being
sliced
and
diced
and
chopped
up.
A
Centralized
exchanges
have
lots
of
functionality
if
they're
available
to
them
to
make
things
quick
and
efficient
and
fast,
and
all
of
that,
but
that's
not
the
way.
This
works
right,
no
automatic
order
matching
like
we
saw
you
find.
Is
there
an
order?
I
want
to
take
okay,
I'll,
take
it
from
that
person
from
that
counterparty
or
you
place
your
own.
So
in
this
way
it's
really
peer-to-peer
right,
you're
directly,
exchanging
with
somebody
else.
A
Bisque
is
just
facilitating
the
two
of
you
meeting,
so
the
protocol
coordinates
out-of-band
fiat
payments,
there's
no
magic
right,
bisque,
isn't
somehow
making
fiat
payments
work
like
blockchains.
It's
a
protocol
that
coordinates
the
steps
that
human
beings
need
to
take
to
interface
with
legacy
systems
and
talk
to
banks
right.
A
So
there's
no
magic
and
settlement
takes
longer,
then
on
a
centralized
exchange,
but
in
return
trading
is
far
more
secure,
far
more
private
and
far
more
censorship
resistant,
then
you
would
get
otherwise.
So
how
so
right?
This
helps.
Keep
your
funds
secure
in
several
ways,
one
it's
entirely
non-custodial
with
regard
to
both
crypto
and
fiat.
A
There's
two
of
three
multi-sig
escrow
with
the
third
key
held
by
an
arbitrator.
So
you
have
a
key
to
that.
Bitcoin,
multi
transaction.
That
holds
your
Bitcoin.
Your
counterparty
has
a
key
and
an
arbitrator
has
a
key.
Your
arbitrator
won't
have
anything
to
do
with
that
trade.
Unless
something
goes
wrong
can't
see,
any
information
has
no
custody
over
anything.
The
happy
path
is
that
when
the
seller
clicks,
I
receive
the
buyers
payment
that
multi-sig
transaction
is
paid
out,
because
this
coordinates
your
two
keys
working
together
to
sign
it
right.
A
A
Every
bisque
application
is
a
tor
hidden
service,
so
bisques
peer-to-peer
network
sits
on
top
of
to
our
network
and
every
best
client
is
a
tor
hidden
service.
Third,
there's:
no
central
servers,
no
databases
to
record
data.
We
couldn't
even
record
the
data
if
we
tried,
because
all
the
data
on
the
peer-to-peer
network
is
encrypted
not
just
by
tor,
but
the
messages
themselves
are
encrypted
to
your
counterparties,
public
key
right
to
your
counterparties,
tor
service,
public
key.
A
So
how
this
helps
you
resist
censorship.
Now,
one
a
fully
decentralized,
even
properly
distributed.
P2P
network
to
our
peer-to-peer
network
like
I
just
mentioned,
inherits
tor
zone
censorship.
Resistant
tor
is
pretty
good
at
being
censorship,
censorship,
resistant
and
we
just
get
all
of
that
for
free
in
a
way
by
riding
on
top
of
it.
The
third
thing
is
it
biscuits
just
code
like
I
mentioned,
the
best
network
is
just
people
voluntarily
working
together
right,
so
there's
no
company
or
other
legal
entity
to
squeeze
or
pressure
with
censorship.
A
So
in
that
18
months
of
process,
thousands
of
trades
worth
millions
of
dollars
without
any
downtime
without
any
major
incidents.
So
the
good
news
is:
it
works,
it's
still
small
biscuits,
but
it's
been
growing
steadily
so
you're.
Looking
here
at
coin
dance,
they
give
us
a
nice
visualization
here,
along
with
a
couple
of
other
decentralized
exchanges.
You
can
look
it
up
there
at
coin
dance,
but
this
is
bisques
transaction
volume
normalized
in
u.s.
dollars.
A
So
this
is
basically
the
US
dollar
value
of
all
Bitcoin
transactions
that
move
through
this
con
bisque
every
transaction
includes
Bitcoin
Bitcoin
is
the
base
pair
right.
You
might
be
trading
for
dollars
or
Euros
or
ether
or
whatever
right,
but
there's
always
a
Bitcoin
in
the
mix.
This
is
the
US
dollar
value
over
time.
Every
week
since
our
inception,
money
going
through,
you
know,
exchange
volume
going
through
bisque
and
you
can
see
in
the
first
month
April
of
2016.
We
did
about
thirteen
thousand
dollars
worth
of
trading
volume
and
this
last
month,
September
of
2017.
A
We
did
about
two
hundred
and
thirty
thousand.
So
we've
been
doubling
roughly
every
three
point:
five
months
since
our
inception
and
looks
like
the
trend
is
continuing
to
head.
That
way.
We'll
see
can't
predict
the
future,
but
it's
been
a
nice
trendline
so
far,
and
all
of
that
growth
has
been
organic,
that
very
little
marketing,
it's
just
people
telling
people
and
so
on.
A
How
that
this
project
is
funded
today
is
the
trading
fees
right.
So,
every
time
someone
initiates
a
trade,
both
the
maker
of
the
offer
and
the
taker
of
the
offer
pay
a
fee
and
those
fees
are
paid
in
Bitcoin
and
paid
out
to
arbitrators
for
the
service
that
they
provide.
Arbitration
services
are
mostly
passive.
Most
trades
go
go
smoothly,
but
when
something
goes
wrong,
there's
a
bug
or
there's
a
misunderstanding
or
something
like
that.
Then
the
arbitrator
gets
involved,
but
for
the
service
of
being
there
and
being
available,
arbitrators
are
paid
on
every
trade.
A
So
that's
how
its
funded.
Now,
the
total
of
those
funds
is
just
about
a
Bitcoin
a
month
spread
across
to
arbitrators.
So
it's
not
exactly
enough
to
fund.
We
don't
have
a
lot
of
costs,
but
it's
still
primarily
funded
out
of
pocket
by
by
the
founders
and
there's
no
decentralized
way
currently
to
compensate
other
contributors.
So
arbitrators
have
a
nice
incentive
right
to
do
their
job,
but
if
you're
issuing
pull
requests,
fixing
bugs
helping
out
with
documentation
what-have-you,
this
feels
today
more
or
less
like
a
kind
of
normal
open-source
project.
A
It's
just
people
help
out
if
they
have
time
and
that
has
scaling
problems
right.
We
bet
it's
difficult
to
grow.
That
way
how
the
biskits
project
is
governed
is
a
there's,
a
small
team
of
contributors
over
all
right
now
and
since
its
inception,
maintenance
and
administration
and
operation
have
been
pretty
centralized
the
whole
time
and
founders
are
the
primary
decision-makers,
so
we're
bisques
technology
is
decentralized.
A
Let's
look
at
the
status
of
the
mission.
I
said,
the
mission
of
the
bisk
project
is
provide
a
secure
private
censorship,
resistant
way
of
exchanging
Bitcoin
for
fiat
right.
Well,
let's
check
the
box
on
secure.
Of
course
you
be
the
judge.
Nothing
is
perfectly
secure
all
those
disclaimers,
but
in
terms
of
being
by
comparison,
a
very
secure
way
to
trade
Bitcoin
over
the
Internet,
fundamentally
because
it
rides
on
top
of
bitcoins
own
philosophy.
Be
your
own
bank
never
put
your
private
keys
in
anybody
else's
hands.
That's
the
way
bisque
works.
A
So
if
Bitcoin
is
you
get
to
be
your
own
bank
bisque
is
be
your
own
exchange,
so
we
can
check
the
box
on
secure.
We
can
check
the
box
on
private
for
all
the
reasons
that
we
talked
about
censorship
resistant,
only
part
of
the
way
there
right
we
get
a
long
way
riding
on
top
of
Tor
and
other
protections
like
the
encryption
that
we
add
on
top
and
so
on.
But
funding
and
governance
are
big
holes
in
our
overall
ability
to
remain
censorship
resistant
over
time.
A
What
do
we
need
now,
then?
Well,
what's
needed
is
a
continued
trading
volume
growth
that
trend
line
actually
needs
to
continue,
so
that
eventually,
revenues
can
cover.
Expenses
doesn't
work
if
somebody
has
to
reach
into
that.
If
certain
individuals
have
to
reach
into
their
pockets
to
keep
the
thing
alive,
that's
essentially
a
centralization
risk
too.
We
need
to
scale
up
contributions
to
keep
improving
bisque,
to
keep
adding
new
features
etc,
which
Foster's
and
facilitates
that
growth.
The
better
bisque
gets.
The
more
people
want
to
use
it
right,
so
we
need
more
contributions,
more
contributors,
etc.
A
A
A
Bsq
is
our
own
custom
implementation
of
the
colored
coin
concept.
How
many
people
know
what
colored
coins
are,
at
least
in
concept,
yeah
about
half
the
room
or
better,
so
the
25
bit
coin,
the
donators
have
submitted
supporters,
have
donated
to
the
project
over
time
since
its
inception.
Right
so
over
the
last
few
years,
we've
gotten
25
Bitcoin
worth
of
donations.
We
take
those
25
Bitcoin,
we
color
them
at
the
rate
of
a
thousand
satoshis
per
bsq
into
2.5
million
vsq
and
that
distributed
to
144
past
contributors
on
the
basis
of
merit.
A
Alright,
so
one
of
these
people
contributed
to
the
project
over
time
and
they
get
a
proportional
amount
distributed
to
them.
From
that
initial
set
of
bsq,
the
SQ
is
not
associated
with
an
ICO
very
important
to
say
these
days,
nor
will
there
be
a
crowd
sale.
Nor
is
this
any
kind
of
crowdfunding
events.
In
fact,
the
price
of
B
of
bsq
over
time
is
by
design
a
freely
floating
variable
in
the
system.
We
do
not
need
be
sq
to
be.
A
It's
traders
this
causes
more
traders
to
use
bisque
more
often
as
it
gets
better
right
and
a
cycle
of
growth
occurs.
That
cycle
can
describe
what's
gotten
bisque,
where
it
is
today
right
that
growth
that
we've
seen
so
far
that
doubling
every
three
point
five
months.
That
must
be
because
bisque
keeps
getting
more
useful
right.
We
added
support
for
alt
coins,
other
cryptocurrencies
and
so
on
along
the
way,
it's
gotten
more
and
more
secure
and
all
the
bugs
have
been
fixed
and
so
on.
Sweet,
that's
a
virtuous
cycle.
That's
a
good
thing.
A
The
traders,
as
they
use
bisque,
like
I,
mentioned
pay
trading
fees
in
Bitcoin.
Those
trading
fees
like
I
mentioned,
get
paid
out
to
arbitrators,
so
arbitrators
are
automatically
compensated
in
the
system,
so
payment
to
arbitrators
is
already
decentralized.
It's
a
function
of
every
trade
that
happens
right.
So
all
good
so
far.
A
A
So
there
are
five
use
cases
for
the
bsq
token
within
the
bisque
down.
The
first
is
trading
so
using
the
bisque
exchange.
Stakeholders
sell
vsq
traders
by
bsq.
Why?
Why
would
a
trader
by
bsq,
because
as
they're
using
bisque
now,
instead
of
paying
trading
fees
in
Bitcoin,
they
have
the
option
to
pay
their
trading
fees
in
bsq
at
a
steep
discount
right,
initially,
it'll
be
a
90%
discount
that
will
fall
off
to
a
degree
over
time,
but
a
steep
discount,
designed,
of
course,
to
incentivize
those
traders
to
buy
vsq.
A
A
They
can
put
up
a
bond
in
bsq,
that's
time,
locked
and
and
so
on,
that
they
can't
spend
right
but
can
be
confiscated
by
voting
if
they
somehow
screw
up
right
and
in
order
in
compensation
for
doing
that.
Not
only
do
they
get
to
issue
compensation
requests
like
anybody
else,
for
the
work
that
they
provide
in
that
higher
trust
role
like
arbitration,
they
can
also
earn
interest
on
that
bsq
bond,
so
this
is
probably
the
least
important
of
the
five,
but
to
be
complete.
A
So
there's
one
issue,
though
you
might
wonder:
okay,
so
how
does
it
solve
this
problem
of
a
decentralized
mechanism
for
paying
all
the
other
contributors
notice
that
I
grade
this
out
right?
It's
still
possible
to
pay
trading
fees
in
Bitcoin,
we're
not
going
to
turn
that
off
and
those
fees
will
continue
to
be
paid
directly
to
arbitrators,
okay.
A
A
What
does
happen
is
that
when
can
when
contributors
issue,
that
compensation
request
a
little
bit
technical,
but
just
if
you
think
about
this
is
a
colored
coin
right,
so
in
order
to
create
any
new
colored
coin,
any
new
bsq
in
this
case,
there's
got
to
be
some
satoshis
backing
it
right.
There
has
to
be
that
underlying
value
and
bitcoin
backing
it.
So
when
contributors
are
issuing
compensation
requests,
what
they're
actually
doing
is
issuing
a
Bitcoin
transaction
in
the
amount
of
Satoshi's
equivalent
to
the
amounts
of
Bitcoin.
A
A
So
that
has
the
effect
of
increasing
the
total
supply
of
bsq
over
time
starts
out
at
2.5
million
bsq
and
then
grows
with
every
compensation
request.
That's
approved
alright.
So
after
a
month,
let's
say
we,
let's
say
the
value
of
bsq
is
$1
currently
and
we
approve
as
a
dhow.
Through
voting
voting
with
bsq
mind
you
right,
we
approves,
let's
say
a
hundred
thousand
bsq
worth
of
compensation
requests.
So
now
the
total
supply
of
BS
q
is
not
2.5
million,
but
2.6
million
okay.
This
looks
like
a
runaway
train.
This
looks
like
a
bad
idea.
A
We
all
understand
inflation,
isn't
so
great
right
for
the
value
of
a
token
okay.
Well,
what
about
those
trading
fees?
On
the
other
side,
trading
fees
are
actually
destroyed
right,
the
bsq,
that's
paid
and
trading
fees
is
burned,
which
of
course,
has
the
effect
of
decreasing
the
total
supply
of
BS
Q
over
time.
So
this
mechanism
allows
for
allows
us
to
have
a
kind
of
monetary
policy
function
within
the
Dow
right.
You
know,
ideally
naively,
you
might
think.
Okay,
deflation
equals
inflation
right,
we're
spending
as
much
on
BS
q
trading.
A
These
traders
are
using
BS
q
at
some
rate
and
that's
all
the
more
compensation
we
can
issue
right.
So
a
hundred
thousand
is
getting
spent
every
month.
Okay,
we
could
do
a
hundred
thousand
of
approvals
of
compensation
requests
right.
Well
what
if
it's
actually
otherwise
what?
If
it's
a
hundred
and
fifty
thousand
a
month
being
spent
lots
and
lots
of
traders
using
using
bisk,
but
all
that's
needed
is
a
hundred
thousand
or
125
thousand
worth
of
compensation
requests.
A
A
It
also
allows
to
intentionally
inflate
to
intentionally
run
at
an
inflated
rate
right.
Well,
we're
just
getting
all
this
started
and
trading
volumes
are
still
relatively
low
and
there's
only
so
many
users
in
the
system
and
so
on.
We
might
intentionally
run
higher.
You
know
run
at
an
inflationary
rate,
greenlight
more
compensation
requests.
A
A
When
do
we
actually
take
that
25
bit
coin
and
distribute
it
on
Bitcoin
maintenance
to
do
that,
and
then
we
and
then
we
stopped
right,
because
every
time
we
think
about
it,
there
are
real
risks
involved
and
we
want
it
avoid
those
risks,
for
example
right
valuation
risk.
Let's
say
we
turn
it
on
well,
the
market
has
no
idea
what
this
token
is
worth.
We
don't
know
what
this
token
is
worth.
It
could
fall
too
low
to
be
viable.
It
could
fall
right
down
to
its
underlying
satoshi
value,
right
that
that
won't
work.
A
It
could
go
through
the
roof
because
of
hype
right.
That
would
also
be
a
problem,
though
we
bring
all
kinds
of
attention
and
heat
to
the
project
that
we
don't
want,
so
call
that
valuation
risk
you
could
talk
about
control
risk
right.
This
is
by
design
from
the
ground
up
of
meritocracy.
Think
about
that
initial
distribution
to
past
contributors.
Initially,
the
people
who
hold
bsq
are
the
people
who
built
bsq
right
in
accordance
to
the
value
that
they've
added
to
the
network.
That's
a
meritocracy,
but
we
don't
want
this
to
become
a
plutocracy.
A
We
don't
want
Wales
to
come
along
and
just
buy
up
all
the
vsq
there's
all
sorts
of
things
that
could
go
wrong,
so
call
that
control
risk
censorship
risk
well,
just
because
we
flip
the
switch
doesn't
mean
that
we've
achieved
full
decentralization
of
governance
and
funding
on
that
day,
of
course,
not
it's
gradual,
so
we
run
the
risk
of
founders
being
pressured
right.
People
get
wind
of
this,
they
say
I,
don't
like
that
project
and
they
shut
it
down
too
early,
and
there
are
others
right
for
time.
A
You
know
just
I
want
to
make
the
point
here
that
we've
analyzed
all
of
the
risks,
and
there
are
many
and
they
are
mostly
existential
right.
Any
one
of
these
things
going
sufficiently
wrong
could
kill
the
project
completely
at
least
kill,
bsq
and
kill
the
down.
So
what
do
we
do?
Well,
we
introduce
what
we
call
phase
zero,
the
bisque
roll
out,
the
bisque
doll
rollout
plan
had
five
phases.
A
Initially,
this
is
a
phase
that
comes
before
those
five
phases,
so
phase
zero,
but
it
also
has
the
effect
of
being
kind
of
like
a
zero
dot
version.
If
you
sort
of
think
semantic
versioning
for
the
developers
in
the
house
right
a
pre-release
phase
for
the
Dow,
the
goal
of
that
phase
is
to
bootstrap
the
Dow
now
immediately,
while
mitigating
minimizing
all
of
those
risks
and
here's
how
we
do
it.
Essentially,
those
five
functions
that
we
talked
about:
trading
access,
compensation,
voting
and
bonding.
A
We
take
out
of
the
picture
completely
trading
and
access,
so
you
can't
buy,
sell
or
trade
bsq
on
this
during
phase
zero.
Nor
can
you
pay
your
trading
fees
in
bsq
during
phase
zero.
What
you
can
do
is
earn
it
through
compensation,
requests
getting
greenlit,
you
can
use
it
to
vote
and
you
can
use
it
for
bonding
in
this
way.
This
during
phase
zero
remains
a
pure
meritocracy.
The
only
way
you
can
get
your
hands
on
this
token
is
to
earn
it.
So
what's
the
approach
overall?
A
In
a
nutshell,
we
begin
by,
like
I,
say
prohibiting
bsq
token
trading
during
phase
zero.
But
how
do
we
do
that?
First,
we
initially
issue
an
initial
2.5
million
vsq
tokens
on
test
net
right
on
biscone
Bitcoin
test
net,
not
on
Bitcoin
main
net.
So
the
underlying
value
isn't
there
because
test
net
tokens
are
not
a
value,
but
it
could
still
like
escape.
It
could
still
theoretically
be
traded,
so
we
every
month
rebase
to
2.5
million.
A
So
like
the
the
in
this
phase,
zero,
the
supply
will
only
grow
right
because
it
can't
be
sold,
it
can't
be
traded,
etc.
So
the
supply
will
only
grow.
It
will
only
inflate
on
a
month-to-month
basis.
So
we
rebates
that
back
down
to
two
point:
five
million,
but
taking
into
account
everybody's
state
changes
proportionally
right.
A
So
if
you
did
some
work
and
US
you
to
compensation
request
in
October
and
you
got
a
hundred
bsq
or
whatever
it
was,
that's
gonna
be
accounted
for
in
the
next
month's
test:
net
Genesis
distribution,
so
we're
actually
gonna
issue
Genesis
distributions
every
month,
rebasing
them
back
to
that.
2.5
million
won
it's
good
practice
right,
but
it
really
ensures
that
the
token
has
no
value
right.
We
also
release
a
new
version
of
bisque
that
treats
that
New
Genesis
distribution
as
the
Genesis
block
right
every
month.
All
right!
A
So
that's
all
for
the
purpose
of
prohibiting
trading
and
we
start
with
simple
high
trust
tools
and
buy
high
trust.
I
mean
like
high
trust
in
the
bad
sense
right
like
we
use
spreadsheets
to
track
voting
and
stuff
like
that,
but
we're
dealing
with
play
money
here.
So
it's
an
option
to
do
that
right,
like
I,
say
voting
track
by
spreadsheet
compensation,
requests
or
happen
on
github
right.
Eventually,
all
of
these
things
happen
in
app
and
on
chain
by
the
design
that
we've
already
put
together
right.
We
know
how
to
build
all
of
this
stuff.
A
We
can't
know
that
without
trying
it
so
be
iterative
right
if
we've
learned
anything
over
the
last
20
years
of
just
software
development
in
general,
right,
agile
methodology,
all
of
that
stuff
iterate
be
iterative
right
and
iterate
toward
those
low
trust
versions
toward
those
on
chained
versions
of
all
the
functionalities
of
the
down
and
continue,
hopefully
growing
exchange
volume
organically
so
that
we're
making
sure
to
have
enough
money
over
time
to
cover
our
costs
as
we
compensate
everybody
in
a
decentralized
way,
okay,
so
the
roadmap.
When
does
all
this
happen?
A
Well,
the
first
thing
is
the
inception
of
phase.
Zero
is
right
now,
actually
just
late
last
night
we
did
our
first
test
net
Genesis
distribution
show
you
some
screenshots
in
a
second,
so
it
in
a
very
meaningful
sense
that
this
cow
begins.
Now
the
duration
will
be
at
least
six
months,
hopefully
right
around
that,
but
at
least
six
months
why
at
least
because
we
want
it'll
take
at
least
that
much
to
have
a
significant
additional
redistribution
of
bisque
to
new
contributors
right.
A
The
founders
have
you
know
so
so
much
bisque
now,
and
we
want
to
reduce
that
amount.
It's
already,
you
know
less
than
50%
with
any
one
founder,
but
we
want
to
reduce
that
as
much
as
possible
have
as
many
people
engage
and
they'll
take
at
least
six
months
to
really
get
that
started.
Okay
and
completion
will
be
marked
with
that
same
kind
of
genesis,
distribution,
but
the
final
genesis,
distribution
on
bitcoin
main
net,
of
course,
not
on
test
net
and
a
release
of
the
best
client
that
supports
trading
and
fee
payments
in
vsq,
okay.
A
A
So
that's
a
colored
view
on
the
Bitcoin
blockchain
specific
for
looking
at
this
transactions,
all
right
process
and
tools,
so
we're
gonna
follow
a/c
for
like
process
for
people
who
know
zero,
I'm,
Q
and
Peter
hint
jens,
and
all
that
stuff
will
use
github,
slack
matrix,
just
sort
of
industry,
standard
standard
tools
for
all
of
this,
and
so
in
conclusion
right
so
how
to
bootstrap.
It
Dow,
of
course,
I'm
sure
there
are
many
answers
to
this
question.
Many
valid
answers
to
this
question.
A
Our
answers
so
far
are
build
a
useful,
decentralized,
app
first
right,
that's
what
we've
done
for
the
last
18
months
prove
that
the
thing
is
actually
of
use
to
anybody
that
anybody
wants.
It
then
build
a
Dao
around
it.
Be
iterative,
have
a
zero
dot
release
phase
phase
zero
like
we're
doing
consider
restricting
the
trading
of
those
doubt
oaken's
right
treat
them
more
like
an
equity
vehicle.
Only
allow
earning
only
allow
voting
right,
design
carefully
from
meritocracy,
don't
lose
that
it's
easy
to
lose
that
and
that's
about
it.
So
you
can
join
us.
A
B
A
Go
ahead
of
the
mic,
so
this
mean
less
money
for
arbitrators.
Does
it
mean
less
money
for
arbitrators
now
that
we,
you
know,
spread
things
out
right?
So
arbitrators
will
still
like
everybody
else,
issue
compensation
requests
for
their
work.
They'll
continue
to
get
paid
to
the
amount
that
people
pay.
Their
fees
in
Bitcoin
they'll
also
get
those
Bitcoin
payments
directly,
but
hopefully
there
will
be
far
fewer
people
trading,
paying
fees
in
Bitcoin,
so
we'll
see,
but
they
at
least
have
the
potential
to
earn
just
as
much
or
eat
more.
Hopefully,
yeah.
C
Other
question
I
would
like
to
ask
her
about
the
difference
about
the
beat
square,
because
that's
what
you
were
describing
it's
I
hurried
a
year
ago
in
in
this
place,
and
that's
exactly
what
beat
score
is
doing
and
actually
don't
you
think.
All
these
basic
token
isn't
this
overkill
to
fund
the
project.
Isn't
it
wouldn't
it
be
much
easier
to
just
take
Bitcoin
fish
and
redistribute
them
somehow
yeah.
A
Yeah
so
two
questions
right:
how
does
this
differ
from
bit
square?
In
name
alone,
it
is
bit
square.
We
renamed
bit
square
four
yeah
certain
go
reasons
basically,
so
why
introduce
a
token
at
all?
The
goal
is
to
is
to
decentralize
the
funding
and
governance
of
the
project.
So
couldn't
we
just
do
that
with
Bitcoin
alone
and
for
time,
but
we
could
go
back
to
the
diagram,
but
essentially
in
theory.
A
Yes
right,
we
could
take
all
those
Bitcoin
payments
and
put
them
all
into
a
multi
sig
transaction
that
gets
paid
out
according
to
some
sort
of
dowloading
process
right
in
theory
in
practice
right
now,
you're
not
getting
much
more
than
single-digit
M
of
n
right,
so
you're
not
getting
much
more
than
single-digit,
M
or
n
in
in
in
multi-site
transactions.
Right.
If
three
is
common,
you
could
I
think
you
can
do
seven,
eight,
nine,
not
20,
not
a
hundred,
not
a
thousand
right,
so
it's
just
not
possible.
A
Now
mask
this
Merkel
eyes,
abstract,
syntax,
tree
stuff,
that's
coming
along,
looks
like
it
might
make
that
possible,
but
we're
not
waiting
around
for
it.
There's
also
how
to
destroy
it.
On
the
other
side
is
I
mean
so
not
needing
to
destroy
or
create-
maybe
that's
all
possible,
but
but
we
just
have
to
wait
for
a
Bitcoin
technology
to
come
along
yeah
and
also
just
allows
us
to
do
so.
Many
other
things
right,
our
own
time,
lock
our
own
bonding
logic,
our
own
rules
around
voting.
D
Last
time
I
looked
at
Cola
coins
was
in
2014.
It
was
quite
painful,
but
it
looks
like
there's
been
a
lot
of
progress
there
that
they
explore
and
stuff.
My
question
is
around
the
creation
and
voting
is
this
creation
of
the
new
issuing
of
the
coins
that
can
like
control
by
the
voting
in
some
cryptographic
matter?
Or
is
it
you
still
need
to
trust
some
administrator
to
actually
be
nice?
Yes,.
A
Yeah,
so
on
the
colored
coins
front,
I
didn't
mention
it,
but
this
is.
You
know
that
there
have
been
different,
colored
coin,
implementations
and
kind
of
attempts
to
maybe
standardize
and
so
on.
This
is
none
of
that.
This
is
totally
bespoke.
It's
our
own
coloration
logic.
We
don't
have
a
dependency
there
by
the
way,
and
the
second
question
just
remind
me:
it's
it
though
voting
is
voting,
is
voting
basically
on
a
sort
of
on
chain
event.
Yes,
it
is
right.
A
A
The
compensation
requests
and
checking
I
approve
that
I
disapprove
that
and
so
on,
that
all
gets
put
together
in
one
transaction
on
chain
being
validated
and
so
on
by
bisques
coloration
logic,
and
that's
how
we
know
what
valid
bisque
is
right,
because
there
was
a
transaction
that
came
along
before
that
greenlit
it
yes
a
Mike
over
here
or
do
we
have
time
I'm
some
of
it?
Okay,.
E
Uh-Huh,
okay,
my
questions
about
the
control
risk,
so
you
talked
about
the
whales
coming
in
buying
up
all
the
bisque,
which
I
think
is
quite
pertinent,
since
it
seemed
like
a
few
of
your
revenue
streams
being
earning
interest
from
the
bonds
and
also
earning
interest
from
the
from
the
compensation
depended
on
having
bisque.
So
how
does
kind
of
ignoring
that
section
in
the
phase?
Zero
control?
For
that?
After
phase
zero
yeah.
A
Right
so
so,
how
do
we
control
for
control
risk
after
phase
zero
right
phase?
Zero,
just
prevents
it
because
nobody
can
buy
it
right,
but
afterward
yeah
people
could
start
coming
in
and
buying
it
up.
Of
course,
that's
throttled
by
the
liquidity,
that's
being
provided
by
stakeholders
right
I
mean
just
one
thing
to
mention
that
doesn't
prevent
it
at
all
right.
But
the
second
thing
is:
is
that
again
part
of
the
design
is
that
is
that
voting
right
is
actually
not
simply
stake
based.
A
So
it's
not
purely
a
function
of
one
one
bsq
one
vote,
but
rather
it's
weighted
by
a
reputation
right.
So
it's
about
a
70
percent
reputation,
weight
versus
30
percent,
just
pure
stake
weight,
so
people
can
buy
bsq
and
can
have
a
meaningful.
You
know
ability
to
participate
in
the
governance,
but
70
percent
of
that
weight
is
people
who
earned
it
right
and
we
have
mechanisms
to
do
that
with
the
coloration.