In an earlier proposal, we had passed a maximum debt ratio of 70% https://gov.basisdollar.fi/#/basisdollar.eth/proposal/QmVteiki6KzC76oTstMm8f7RxeXNLNwYtHFxag89JnCmoD
We have currently almost exhausted our supply of bonds. Given that bonds are roughly priced at 1/3 BSD at present, we will need a significant increase in the debt ratio to soak up BSD from the circulating supply.
This proposal increases our debt ratio by 10-fold, to 700% to ensure that the system makes a significant amount of bonds available without the need for lagged waiting period between passing proposals. There is a possibility we may not even need the full amount of additional bonds.
Proposal: Raise max debt ratio to 700%.
Advantage: Increasing the supply of bonds allows more BSD to be soaked up from the system.
Disadvantage: During expansion, there will be an increase in the amount of BSD issued when the increased amount of bonds are redeemed.