AIP11: Remove MAHA fee from bond redemption

We can say that those that bought bonds were among first supporters of MahaDAO ecosystem, first that backed up system to touch 1$ target. As we now have MAHA burning through penalty fees, I don’t see reason to have those fees for bond redemption. As a matter of fact those that bought bonds and hold them through contraction period should be awarded not penalised with MAHA fee. So I propose that we put this to vote.

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Yes agreed; I think bond holders don’t need to be paid redemption fees anymore since MahaSwap has incentives built in.

Further it might be the case that we can probably get rid of bonds altogether if the protocol maintains the peg properly at the fair price.

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Agreed. To put it in a crude way, bond buyers basically sacrificed a lot (opportunity cost) to help bring ARTH back to peg. We are risking a lot more than the current ARTH buyers as we cannot access to our bonds at all. Hence, penalizing ARTHB buyers by charging MAHA fees seems unorthodox. Since we also already have a new mechanism in place to burn MAHA, bond redemption should absolutely be exempted from MAHA fees. I’m also aware that bonds might be entirely removed from the protocol as it had been shown to be unsuccessful in bringing price back to peg but instead of penalizing current ARTHB buyers, it makes much more sense to reward them for helping the protocol. In this case, I wouldn’t be greedy to ask for rewards but just removing the Maha fees during redemption would be really great for us ARTHB holders.

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I agree. Fees for the bond holders is fine for the future but right now charging people seems unfair.