[RFP]: Adjustment of Fee Structure and Funding Mechanism for Optimized CDP Management

[MishoKanaria]

Proposal Due Date

ASAP

Proposal Overview

Request for Change.pdf

This change request aims to create a more sustainable economic system
within the SORA network by optimizing the fee structure for improved
CDP (Collateralized Debt Position) management. The primary objective is
to ensure long-term economic sustainability and provide consistent
funding for development, incentivizing builders and contributors.

Proposal Goals

The proposed change aims to establish a sustainable economic system by
optimizing the fee structure and improving CDP management. The desired
outcome is to achieve a balanced system where the issuance of KUSD is offset by
network fees, ensuring a monthly net zero issuance.

Scope of Work

Equilibrium in KUSD Issuance:
A new model will balance the issuance and repayment of KUSD with
network fees to achieve a stable economic state where monthly network
revenues and expenditures are balanced.
2. Optimized Fee Structure:
Adjust the fee structure to allocate a larger portion of SORA network fees
towards buying back and burning KUSD.
3. Debt Cleanup:
Implement measures to clean up any outstanding debt that could
undermine the stability of KUSD and Kensetsu. The goal is to maintain
Kensetsu’s reputation by removing underutilized assets.
4. New Governance-Controlled Vault:
Introduce a new vault mechanism that operates exclusively through
governance:
o Fees will be used to purchase KUSD to repay outstanding loans.
o If no debt needs to be repaid, network fees will directly purchase
and burn KUSD.

Current Roadblocks and Barriers to Success

-Will need a new independent vault that is only controlled via governance
-Does not guarantee increase in liquidity or transactional volumes
-Slow economic growth to ensure stability
-Stability in KUSD

Evaluation Metrics and Criteria

As according to the attached document

Submission Requirements

As according to the attached document

Submission Method

Blockchain: Mainnet

Project Due Date

No response

Budget Amount

No response