As the idea to print unbacked DAI is discussed here and here and on the chat, I think we need to know the position of the overall community to either work the idea or stop it (didn’t find a poll about that).
Full disclosure I’m against so keep in mind while reading the rest of this post.
First, from the whitepaper it seems clear to me that 1DAI = $1 at the ES.
Every Dai in circulation is directly backed by excess collateral, meaning that the value of the collateral is higher than the value of the Dai debt
Changing that would break the promise. I think trust is important and once broken it no longer can be restored. Are you ready to trust the USA to go back and keep the gold standard for 100 years if they say so? Me neither.
The second argument is from a balance sheet point of view. The equity part of the Maker balance sheet is actually the surplus buffer, i.e. almost nothing. Printing DAI would mean having a negative equity quickly therefore being insolvent. Central banks don’t print money, they expand their balance sheet (similarly to the aDAI/cDAI discussion).
Place to add any con argument, let me know what to add
Nevertheless, there are some good arguments for printing unbacked DAI.
The inability to solve the peg issue is a trust issue as well and some might object that USDT is the stablecoin leader while being probably insolvent. Printing unbacked DAI would be only temporary and solved by either the stability fees or by issuing MKR tokens. The MKR market cap is worth more than all DAI issued, it shouldn’t be an issue.
Another way to look at it is that the public see DAI as having more value than the collateral (collateral + utility value). It can be the censorship resistance or whatever, but DAI is worth $1.015 for some people for a reason.
Place to add any pro argument, let me know what to add
Choose your camp carefully or dai.
Post poll results : The poll was closed 7d after the start and 5d after the last comment. It show that the Maker community in majority feel that the promise of 1 DAI = $1 of collateral at any time is essential. Still one fifth are okay to have it lower than $1 and one fifth don’t have a clear opinion at the time.
- yes, 1 DAI can be backed by less than $1 of collateral to solve the peg issue
- no, 1 DAI = $1 of collateral, that’s the promise