DAO Fund Spending 002
The 2nd DAO fund spending is a donation to @tom1ek who has a very constructive proposal regarding Bond Mechanism. We have donated 300 $BDO to @tom1ek with this transaction detail.
His proposal regarding Bond Mechanism seeks to favour bBDO buyers and ultimately reduce volatility which greatly favors bDollar as a whole:
 (Implemented) Remove discount during contraction, and introduce bonus redemption rate (capped at 30%) during expansion: Scenario 1a: if $BDO = 0.8, burn 1.0 BDO to get 1.0 bBDO (price $bBDO = 0.8) Scenario 1b: if $BDO = 0.6, burn 1.0 BDO to get 1.0 bBDO (price $bBDO = 0.6) Scenario 2a: if $BDO = 1.15, redeem 1 bBDO and get back 1.15 BDO (price $bBDO = 1.32) Senario 2b: if $BDO = 1.3, redeem 1 bBDO and get back 1.3 BDO (price $bBDO = 1.69)
As you may notice, users will not redeem Bonds right away whenever the price bounces back due to the bonus rate. In other words, users are motivated to wait for BDO price to increase even more than $1 to get a better return on their bonds upon redemption.
 (Implemented) Introduce penalty fee when users redeem Bonds while the price of BDO is still below $1. The penalty fee amounts to 10% initially and will be configurable by a community vote soon.
 Opening Debt (Bond) Market (to be implemented). This market is working well in the real world's economy and, we aim to bring it (1st time) to our seigniorage money system.
Last modified 2yr ago