I think it’s great to consider this as a thought experiment to illustrate the decisive action that is needed to deal with the current imbalance of the protocol. But obviously actually implementing this would be suicide. I thought this would be apparent and I’m a bit surprised nobody seems to have even mentioned the real world adoption consequences of doing something like this.
Effectively all credibility of the project would be lost - especially with actual users, but also more broadly with anyone who has ever heard about the project.
Effectively all existing real world network effects and adoption would be reversed.
Maker would have pivoted into becoming a niche accessory that services COMP farmers.
I’m not saying that doing nothing and just keeping the peg broken wouldn’t lead to a slow death, because it absolutely would. But negative rates means choosing immediate death.
The goal of Maker is to create an unbiased world currency that can level the economic playing field and create financial inclusion for people all over the world. Serving real people and providing real value as a new currency. Maybe people here aren’t aware but the project already has some levels of success with this mission, specifically in South America - this tweet by Mariano from the foundation is a good example: https://twitter.com/Mariandipietra/status/1282827104732827648
These are real, regular people from the real world that are using Dai, through various integration partners and distribution channels that originally chose to trust the project and Maker governance with their money and value rails. If that trust is betrayed, it would mean irreversibly destroying virtually all of the organic adoption that has been achieved so far. (Again, it IS already slowly going in that direction with the broken peg, so something has to be done)
It’s not all whale COMP farmers or algorithmic bots. In fact the bots and the whales wouldn’t be using Dai at all if it wasn’t for the organic adoption.
Now lets explore the COMP farming pivot for a second. It is very likely that it wouldn’t be long run sustainable, because the Maker protocol needs to generate significant amount of fees in order to fund its own technical security and continued growth. If it fails to grow big enough to be able to fund this, it cannot safely continue to operate, and will eventually have to shut down.