Proposal Details
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Allow treasury withdrawals only when the price of 1 ADA is at or above 1 USD
happystaking
Abstract
Maximize the efficiency of treasury funds and allow withdrawals only when the ADA price is at or above 1 USD.
Motivation
Preventing the treasury from rapid depletion when the ADA price is low compared to the USD. Many if not all projects or companies building on Cardano use USD to calculate their cost and then convert that amount to ADA. In a bear market with low ADA prices this could lead to high amounts of ADA withdrawn and it may deplete the treasury at a high rate. In order to counter this it would be better to allow withdrawals only if the ADA price is relatively high. ADA withdrawn from the treasury is better spent when ADA is strong against the USD, because less ADA is needed to get the same USD amount and more funds will remain the the treasury for future use.
Rational
A smart contract that handles treasury withdrawals should be implemented/modified and first consult an oracle before allowing the withdrawal to determine the ADA/USD price. The withdrawal is allowed only when the price of ADA is at or above 1 USD.
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