I will not support change MCR to 1.6 because it's very hard to decide which one is better.
this can't contribute too much to encourage supply, but increase big unstable to the market.
and it's even more bad in the future when you decide to increase MCR like from 1.6 to 1.7
Change is always together with difficulty and risk, but BTS cannot be great without change.
And I believe changing MCR to 1.6 is a change with low risk, but will contribute obviously to the whole ecosystem.
DAI now has a market cap 10+ times of bitCNY. no one should be satisfied even if you have hundreds of millions of BTS.
Surely reducing MCR will contribute to encourage bitCNY supply, if I have 10M BTS, now I can borrow 1.8M bitCNY with CR=2.2, if MCR change to 1.6, I can borrow 1.95M bitCNY with CR=2.05, both CR has the same distance to MCR, in other word, same risk on margin calling.
Yes, 1.6 is more closer to GS, but there is still a big buffer, and BSIP58 is already active on bitCNY, in the worst black swan will not happen, but black swan protection will happen, which will not bring pain like black swan, but just cause some bitCNY devaluation and will restore soon, we have experienced this months ago.
Yes, it's more difficult to increase MCR, but that's also possible when the whole community reach strong consensus to do that, and this change is to 1.6, not much lower value like 1.2 or 1.3, in my view we do not need to change it back from 1.6 to 1.75 in long time.
As a reference, DAI has a MCR of 1.5.
I regret that you do not support this change as a whale.
I have no other choice, I'll try my best to lobby the whole community to win this change.