DAO VOTE #7 Reducing Bond Discount Rate

Abstract Lower bond discount rate between 0-3%

Motivation With the community consensus to lower APY to 1000%, leaving the bond discount rate relatively high will create conditions for arbitration, thus increasing sell pressure. By lowering the bond discount rate, the dynamic between the 5-day staking ROI and bond discount rate will be relatively balanced.

Note: The bond discount rate is dynamic. The more people bonding, the lower the discount rate and vice versa. Eventhough the initial discount rate is set based on community consensus, the discount rate can increase if there is no one bonding. Nevertheless, setting the initial bond discount rate range lower can disincentive arbitration.

Pro:

• Lower selling pressure
• disincentive arbitration
• lower inflation and dilution

Cons:

• possibly less trading volume due to lack of trading * * opportunities
• less bonding
• possibly decrease 'new' liquidity in PCS LP

Options: 1: 0% 2: 1% 3: 2% 4: 3% 5: As is