BUIP111: Use BTC over BCH or BSV

[torusJKL]

BUIP111: use BTC over BCH or BSV
Submitted on 01 Januar 2019 by torusJKL

Background
On November 2015 the BCH network split into two (noteworthy) chains.
BCHABC with the ABC rules (hereafter BCH) and BCHBSV with the SV rules (hereafter BSV).

Although BCH has a higher market value it is not clear which chain (BCH or BSV) will become the dominant one.

Motivation
No matter which of the two chains will become the dominant one we want BU to be funded well and not take any risk by selling one or the other coin prematurely.

BU should keep an equal amount of BCH and BSV (number of coins, not fiat value) until the outcome can be assesed better.

Task
Whenever services need to be paid BU should sell/convert primarely BTC.
If this is not possible BU should try to keep the amount of BCH and BSV (number of coins, not fiat value) as similar as possible.

Timetable
Ungoing until canceled by a new BUIP.

 

[torusJKL]

@solex please add this BUIP to the index.

 

[solex]

@torusJKL
I understand the sentiment, however, in practice it is 90% of the time the recipient who decides whether to receive BCH or BTC. Recipients are those who have made expenses on behalf of BU, such as renting servers, reimbursing speakers at BU sponsored conferences, piecemeal software development, etc. usually they state a preference and we like to oblige when possible.
At present most BU funds are in BTC although a small portion was shifted to BCH as per BUIP072 (Partially re-weight BU's funds towards BCH). Therefore it has an equal amount of BCH and BSV. These are going to be split into separate wallets. If someone wants to be paid in BSV then I am sure we will oblige.
I think we need to be clearer in your BUIP. Are you proposing to override the preference of receivers and always pay in BTC? As we have equal amounts of BCH and BSV is the thrust of this BUIP to formally maintain that balance and not re-weight?

edit. Thinking about this. We already have a BUIP to sell BU's BCH for BSV. This BUIP would make more sense if it was to sell the BSV for BCH. The default is to keep both and no BUIP is required for that.

 

[torusJKL]

I think we need to be clearer in your BUIP. Are you proposing to override the preference of receivers and always pay in BTC?

No, the receiver should be paid in the coin of his choosing.
What BU could do is to convert the BTC into the currency or coin that the receiver asked for.

We already have a BUIP to sell BU's BCH for BSV. This BUIP would make more sense if it was to sell the BSV for BCH. The default is to keep both and no BUIP is required for that.

BU should not gamble with its finances at this point and thus I'm not interested to create a "sell one for the other" BUIP.

I could remove the part that requires equal amounts of both coins but there is still the part that BTC should be used primeraly and as mentioned above should be converted if needed.

What do you think?

 

[solex]

@torusJKL When members are being asked for their opinion it needs to be something substantial which is beyond day-to-day operational matters. An example of an operational matter is whether coins should be converted before payment, which does add to the overhead of managing payments. It is simpler and easier to maintain separate balances and pay from those directly.

Further, we had BUIP073 last year to convert all of BU's funds from BTC and that failed, so the membership have decided that it is wise to maintain a BTC holding. The implication is that BTC is not to be deliberately run down ahead of the BCH or the BSV. We now have a BUIP to sell the BCH for BSV, so I don't really see the room for another BUIP unless it is to sell the BSV for BCH or BTC. You say you don't want that, well fine, in which case I respectfully suggest that this BUIP is a variation of BUIP073 which has already been rejected.

 

[torusJKL]

The idea behind this BUIP is essentially to keep equal value of both coins so that BU does not gamble and might come out as a looser (financially).

But I see you point that it contradicts other BUIPs.
I thus revoke this BUIP.
@solex please do not put it up for a vote.