Yes, if we used the DAI value of the ETH at time of liquidation (or an average over Black Thursday) it would be less value than if we compensated in ETH (given the current ETH price).
We’ve yet to decide what ETH price we would use to determine the amount of DAI compensation though. We could use the current ETH price, although I don’t think that is necessarily a good idea either.
If I’m reading the report right (@MakerMan please correct me if I’m wrong) to compensate all ETH Vaults at 24% of collateral (~32k ETH) at a $200 ETH price comes to 6.4M DAI. Personally I think it’s doubtful that MKR Token Holders are going to incur that much more bad debt in order to compensate Vault Holders. But again, I could be wrong.
Mostly because things don’t just magically happen. The reason Rich wants a team is because previously the proposed polls promised things that there was no plan in place to implement.
Say for example we wanted to compensate in ETH, someone needs to figure out how to get the MKR Protocol to acquire that amount of ETH. The way this works is the Protocol can mint DAI, but then we’d have to use DEX’s to convert. Okay. But then we need to deal with slippage. Which DEX’s do we use? Who compiles the list of Vault Holders and how do we calculate how much we owe each one? Do Vault Holders need to be able to opt out? Ditto for BAT Vaults. If some Vaults do opt out, how does that process work? How does this interact with the class action lawsuit against the Foundation.
Furthermore, the people that are sorting all this stuff out need to get paid, because frankly, it’s all work. We’ve never paid anyone from the Maker Protocol before, so how does that work? Payment in advance? On delivery? By hour using a streaming solution?
It may sound simple, but it isn’t.