This has been discussed previously in this thread however the matter became largely unimportant after the Dai supply dropped previously. Several people have expressed that it might be time to renew the discussion considering the recent Dai supply increase and bullishness of Eth. I’ve created a new thread for clarity, both because the previous thread is out of date, and because many of the responses were meta-discussion around polling.
Should we increase the SCD debt ceiling?
- Reaching the debt ceiling introduces a confounding factor into the Dai price as demand increases cannot be matched by supply.
- Reaching the debt ceiling means that would-be CDP users are forced to go elsewhere to borrow Dai against Eth. This reduces income that could be used to burn MKR.
- Reaching the debt ceiling hinders the natural growth of Dai, and to a limited extent, the DeFi ecosystem.
- Increasing the debt ceiling increases the maximum severity of the peg breaking downwards in the event of a massive printing of Dai.
- If the system were to be proved to have a smart contract issue, more funds would be at risk.
Please try to think of additional points to add to these lists. I’ll add any I see expressed in the replies to this post.
I have described the process for the progression of this (and future) proposals here. Please feel free to provide feedback, the process is still being developed, and it is open to change.
We’ll start with an initial sentiment poll to determine whether there is a general agreement to increase the SCD debt ceiling from its current value of 100 million. Please use this week to signal and to propose and discuss specific options. If we have a majority (>50%) for change after 1 week has passed, I will add a poll to gather consensus on any specific options proposed.
This initial sentiment poll will remain open throughout the process.
- Yes, we should increase the SCD debt ceiling.
- No, we should not increase the SCD debt ceiling.
- Abstain (I just want to see results)
- Abstain (I have no opinion)
- Abstain (I don’t feel I am knowledgeable on the subject)
- Abstain (I disagree with the poll options)
- Abstain (I have a different objection)