Guys, don’t you think that additional taxation and overcomplication of the system may deter the investors? Also, don’t you think that punishing whales just for being whales may lead to a situation when small investors would not be able to lift the price when the market cap increases as they wouldn’t have enough funds?
I don’t agree with those who say that it’d be better to hold redeeming bonds. It’d be a situation that favors upholding the debt which I think wouldn’t be good for a system as it’s goal should be, first of all, to get rid of the debt while staying stable. Upholding the debt would just introduce delay in the system response which, to me, would create even more instability in the system as it’d become less predictive and harder to regulate.
Well, to me what’s crucial right now is automatic redemption of bonds. Along with current functionality, wouldn’t it be better to create a mechanism that would let people lock-up their ARTHB on ARTH - World's first Valuecoin so that the protocol buys it back whenever new ARTH is minted? It seems to me that in the long run it won’t be profitable for people to stabilize the ARTH price with bonds as it requires too much attention from them while, on the other hand, expansion phase was smooth and easy and required just to lock-up your ARTH or LP tokens as the reward generated by itself.
Just take a look at this from a perspective of someone that buys ARTHB, freezes their DAI, and has to be on time every time the new epoch kicks in, constantly observing the price, to redeem their ARTHB and unlock the DAI. Considering the fact that at the beginning of a new contraction phase epoch the price reacts dynamically, it’s just easier to buy ARTH for the lowest price just before new epoch starts and sell it whenever one feels like to. Without a need to wait for the price to hoover above the target price for at least an hour and keeping an eye on a number of ARTHB available for redemption at the moment. For me as an end user, it just seems to me that the bond discount of 20% would not incentivize people enough to make them freeze their funds in bonds. Also, if what I say is pertinent, it might eliminate one of the use cases for MAHA paid as stability fee.
One more idea that came to my mind while writing this - mechanism of preemption for bonds holders. In the expansion phase, first the locked-up bonds are bought back for newly minted ARTH, then the rest is distributed. Otherwise we’d be minting new ARTH while still being in debt if the bond holders won’t come on time to have their bonds redeemed.