July 7th, 2021
As the Kimchi Premium, which is a price difference between crypto currencies of south Korea exchanges and other crypto exchanges, goes down from 10~15% to around 1~2%. We propose to normalize KRT tobin tax from 1% to 0.35%.
- The Terra oracle price feeder will be upgraded to exclude the Kimchi premium to KRT price feeding. As the protocol itself is designed to be always track correct forex rates. If there is a significant Kimchi premium again, the KRT off-chain market price itself will be adjusted due to arbitrage. We highly recommend validators to not include kimchi premium to KRT price feeding.
- We have plans to follow up another governance proposal that proposes to reduce oracle bandwidth.
This proposal is a follow up proposal of below proposal.