Proof-of-Deposit – initial proposal and request for feedback

Governance
21

Thanks @John.Fletcher .

  • Some docs here on Celo stability: Celo Tobin Tax | Celo Docs

  • There is a Tobin tax that can be turned on (currently disabled) to levy a fee on transactions that take CELO from the reserve.

  • I don’t believe the reserve can confiscate cStables.

  • The reserve cannot mint more Celo to try and improve collateralization - although this is the subject of another forum post here: Last Resort Minting Mechanism

  • In short, I believe it is technically possible that it would be impossible to redeem. In practise, whether this happens would depend a lot on how many cStable wallets decide to try and redeem in the case of the reserve being undercollateralised, and how that number compares to what remains - albeit undercollateralised - in the reserve.

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