I will try one last time to explain my point of view.
To begin, we must stop with the argument that the only reason why we want to stop the curve is speculation.
Why is the price of the token important?
Simply because I want to be paid for my future work in DXD and I obviously don’t want it to lose value.
Secondly, if we want to make our funding sustainable we need to make sure that people don’t lose trust in the value of DXD.
Why will the current bounding curve causes a decline in value?
Because an increase in circulation supply necessarily has a negative effect on the price.
Does this mean that we should not increase it?
Of course not, it’s an important source of funding and we need to be able to raise funds.
But the key question is, is the price at which DXD is sold the right price?
No one can know because right now the price is defined by this bounding curve, it can never go above because when the price goes up all previous investors are diluted so the right to future revenue is reduced.
The history of the economy has shown that the most efficient way to put a price on something is to let the market decide.
It is not a free market if the price has a upper limit.
Why can’t we vote, for example, like the Ethereum, have a policy of never raising more money than necessary (minimum necessary issuance policy)?
Then there is another problem with this bounding curve, which is that it can be stopped.
A very profitable attack would be to buy DXD via the bounding curve at a reduced price (compared to the secondary market) and then manage to get enough REP (whether by participating, corrupting or staking if set up) to vote to end the issue of new DXD. This will inevitably have a very strong effect on the price of the DXD and thus allow the attacker to dump it at a profit.
This lack of alignment between the interests of DXD holders and REP holders is at the heart of the problem.
Trust in a system is binary, at the moment investors have trust but we must work to keep it.
For the moment REP is not decentralized at all, so the risk is quite minimal, but before making it more decentralized it is absolutely necessary to choose one of these two options in my opinion:
- Make the bounding curve immutable so that the rules are defined and cannot be manipulated later.
Stop the bounding curve and only raise money when needed again.
Finally, I want to make it clear that for me, with or without the DXD token the project has value (which is worrying), whatever decisions will be made, I would accept them and I just hope we won’t regret it.