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Proof of burn #55

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ManfredKarrer opened this Issue Nov 11, 2018 · 1 comment

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ManfredKarrer commented Nov 11, 2018

This is a Bisq Network proposal. Please familiarize yourself with the submission and review process.

I just implemented a proof of burn feature into the DAO. This proposal is more to give a overview about the concept.

It was mainly implementes as it is very similar to teh asset listing fee and I wanted to be sure that it does not break consensus if implented - as that would make later implementation after the DAO is live difficult/impossible (and it required some change in the parser code - so it would have been an issue).

One can burn any amount of BSQ and use a pre-image as well as signature/verification to proof ownership of that tx.

One possible application for that feature is distributing BTC as BSQ to the stakerholders. E.g. the funds from the BTC donation address could be sold to BSQ by the donation address owner and then the BSQ burned. That way they get distributed to all stakeholders.

There are probably other use cases like reputation by burning BSQ but the bonded reputation is likely more interesting for that, but maybe there are some special cases where burning is fulfilling some requirements and bonds not.

One can use the pre-image to proof that he was the creator of the tx, but thats basically a one time proof as afterwards the pre-image is not private anymore.

Better is to use the signing tool. By signing and verifying one can proof to be the owner of the proof of burn tx. For sig/verification the EC key for funding the 1st input in the tx is used.

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ManfredKarrer commented Nov 24, 2018

I leave that open for references/information purpose.

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