I've foreseen the situation when drafting BSIP42, see
https://github.com/bitshares/bsips/blob/master/bsip-0042.md#uptrend-and-discount . In short, a static force settlement offset is not quite compatible with BSIP42 when a bitAsset is oversupplied. BSIP42 aims to let debt position holders reduce debt at market/fair price, but not at higher price to punish them. If we agree with BSIP42, we either need to adjust force settlement offset dynamically, or disable force settlement temporarily.
I've explained why disabling force settlement is doable in this thread
https://bitsharestalk.org/index.php?topic=27170.0 . I'm not going to explain again. I'm not going to push anything. It's no fun.
I feel very very disappointed now.
After experimented BSIP42 for 2 months, which has shown obvious effects towards a tight peg, people still didn't understand the ins and outs, including the ones who appeared to support BSIP42 (e.g. Fabian @xeroc), not even mentioning the ones who voted "NO" without even written anything in this forum. All discussions came to a dead end. No progress. Nothing. Not even a valid argument. When people just say no but don't tell you why, how you can improve? We're all 5? It's that hard to discuss rationally? It's that waste of your time to learn a bit more?
These are our community? These are our voters / stake holders? These are the people who will decide the future of BitShares? I'd say there is no future. It's easy to make an experiment fail but hard to make it succeed. You decide. I'm out. I'm tired.
OK, some of you asked for a fix for the MCR issue. I've submitted the code (the fix) to github 2 months before, whoever wants to test it and push it online can go ahead, or write your own fix. Actually, adjusting MCR is
effectively the same as adjusting price feed + force settlement offset, so, before the fix is online, we can do something to keep things going, however, whether to do and what to do also depends on you.
Update:
Properly punishing debt position owners when a bitAsset is oversupplied is fine, since it encourages them to reduce supply proactively. From this point of view, forced settlements can still play a role in the game, although it can be replaced by forced margin calls. The thing is, target CR doesn't apply when a debt position is being forced settled, so, not like margin calls which evenly apply to all positions with (relatively) low CR, force settlements may punish a few positions too hard, but don't punish other positions at all, so it's IMHO not a fair enough rule.