A proposal to “halt” the bonding curve has passed here.
As I suggested in this post, the easiest way to pause/halt minting on the bonding curve is to adjust the
minInvestment parameter to a large number. You can read more about what parameters of the bonding curve that DXdao can control in my post here.
minInvestment is currently set to 0.001 ETH which you can confirm on etherscan.
You can see where
minInvestment is checked in the DecentralizedAutonomousTrust code and thus where it could act to prevent buys:
As long as minting from the bonding curve is paused, DXD effectively has a fixed supply rather than the dynamic one following the curve that it has now.
Install a plugin to allow DXdao to interact with the bonding curve.
Conduct a thorough technical review to be sure of no adverse effects of setting the
minInvestmentparameter very high.
Make a proposal to update the minimum investment parameter to a number high enough to prevent any possible buys.
The bonding curve serves both as the fundraising mechanism for DXdao as well as the way in which profits are distributed back to DXD holders. Adjusting the
minInvestment parameter should have no impact on the latter, but it does mean fundraising via the curve is paused. A concern that has been raised is that DXdao may not be able to unpause the curve in the future without having an adverse effect on the price, and is therefor limiting its future ability to fundraise. To illustrate, imagine the market price of DXD rises to 2 ETH, while the mint price of the bonding curve is stuck at the current amount of 1.0203 ETH. If DXdao were to unpause minting on the curve at that point, arbitrageurs would buy off the curve and sell into the market, crashing the price of DXD.
In my view this is not a major concern for a few reasons.
The ETH value of the treasury stands at $13.5M which represents many years of runway at the current burn rate.
A significant pre-mint of 100,000 DXD is vesting to DXdao. This represents over 2/3rd the supply of DXD. If DXdao does find occasion to fundraise again in the future, it could sell some of this DXD supply to do so.
Finally, the bonding curve itself is upgradeable, meaning that in the future it would be possible to deploy a new one which could enable fundraising to start at the prevailing market rate or whatever price is most desirable.