Summary/Discussion of Parameters for SCD Shutdown

The results are in!

After weeks of discussion and voting, I have closed the final signal polls for SCD Shutdown. To recap, with the community currently trying to maintain 2 separate Dai credit systems, I thought it imperative to begin the process of collecting opinion on when we should shut down the legacy system. Especially since there seemed to be a lack of consensus on the issue. This led me to begin with a signal on “When should we trigger SCD Global Shutdown”.

With this first signal I asked the community to vote for which parameters they wanted to see used to determine when SCD should shut down.

Here is an image of the results:

At the conclusion of this poll I determined that the vote was inconclusive and wanted to confirm that the community indeed wanted both supply and date to be used as deciding factors in shut down. I had discussions with @LongForWisdom on the peg stability and we determined that regardless of vote outcome it would be important to have some signal data on peg deviation from a risk perspective. I may have taken some liberties on unilateral decision making in this regard so I wanted to be transparent about that. After these conclusions I made 2 more signal requests.

The first one for determining whether Date and/or Supply should be included as shut down parameters.

Here are the results:

The second poll was to determine the specific threshold of peg deviation required to trigger SCD shutdown.

Here are the results:

Once it was clear that community members wanted both date and supply as parameters, I could create signal requests more specific to each.

First I created a signal request for Shutdown Date.

Here are the results:

Next I created a signal request for Supply threshold required to trigger Shutdown.

Here are the results:

In conclusion (TL;DR):

  • Determined data from community was required to determine when/if to shut down SCD system
  • Created Poll to determine which factors were important
  • Created Polls to determine specific thresholds required to activate SCD Shutdown

Poll Results Summary:

  • Peg Stability - +/- $0.05 (38% Consensus)
  • Sai Supply - < 10 Million (44% Consensus)
  • Date - 6 Months (39% Consensus)

Next Steps

Now that we have determined some consensus on SCD Shutdown Parameters I would like to use this post for final discussion on the topic. If community members have strong opinions that have not been brought forward or others would just like to talk through more options, now would be the time.

I am aware of discussion ongoing about the Tax function of SCD to repatriate unpaid CDP fees and this is something we should be aware of as discussion continues. Here is another great discussion on the topic.

Once some time has passed (7-14 days) I think we can use this information in tandem with Foundation members to create a formal proposal to move these parameters on-chain. I look forward to discussion on next steps. Thank you for your participation!

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@Primoz did a presentation last Thursday and had some very interesting data points which describe the last 2 months of behavior of the remaining 100 top CDP owners that account for 90% of Sai debt. I feel these stats may be relevant to this conversation, so here they are:

image

Also want to point out Cyrus’s inquiry and the ensuing dialogue about the role of the 12m inactive Sai vs the 8m Sai from debt-increasing CDPs. It’s worth rewatching to understand the logic for what could be a solid basis for deciding the appropriate Sai supply for Global Settlement:
1:00:34

2 Likes

It’s interesting that heuristically the crowd reached consensus on Supply threshold of 10M when that aligns so well with the data, meaning ~8-12M may never get migrated.

The one thing that concerns me is having supply/peg thresholds while at the same time having the tax strategy. If we planned on taxing CDPs in the last 4 days but supply hit 10M the month before that, that would be a problem as we would no longer be able to extract the remaining stability fees. Anyone have thoughts on how we can reach consensus on this issue?

Do we need to set up another signal request to see if the tax idea is even a good one?

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Personally I am not a fan of the tax idea, it’s difficult to tell how many people agree or disagree with it currently. I think a tax related signal request would be a good idea.

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Due to a lack of movement on lowering the SCD Debt Ceiling/migration contract, we had decided to postpone polling on SCD Shutdown. Now that market conditions have changed drastically we are again initiating discussion on this topic.

Therefore, a new thread has been opened here:

Thank you all for participating in this thread. I hope to see you all in the next thread!

2 Likes