BDIP12 pre-proposal: Introduce bond expiry

There are no bonds presently available for sale. The system has hit its max debt ratio of 35%.

There is currently a pre-proposal which increases the bond supply ratio. https://gov.basisdollar.fi/#/basisdollar.eth/proposal/QmS6rQyRYvHhjWQp6Da7CaAAATVMgWpFyTm5wBU84hvymt

However, increasing the bond supply means we are introducing more volatility into the system. The flood of BSD from bond redemptions will result in a high likelihood of us going below $1 again.

There is an alternative: All bonds presently have no expiry. We introduce an expiry date on all bonds. If there is interest in this approach, we can then vote on an expiry period.

What is the effect of this? The advantages are:

1. Expiring bonds free the system up for the supply of new bonds, under the existing debt ratio.
2. Because the debt cap remains, we reduce the extent of a potential flooding of BSD because there are less redeemable bonds (compared to if we increased the debt ratio).
3. Existing bondholders will be incentivized to purchase BSD up to $1 so that their bonds are redeemable for BSD.
4. Existing market participants will have an incentive to front run the rise in BSD prices.

What are the disadvantages?

1. Potential bondholders in a future contraction cycle will hold off on purchases of bonds as they will factor in the expiry risk.
2. Current bondholders in this contraction cycle will be forced to take immediate action to push the price of BSD up to $1. (This is also an advantage to the whole community, if you look at it, rather than them sitting back.)