# Removal of leveraged positions **URL:** \ **Category:** MOC Improvement Proposals\ **Created:** [January 25, 2023, 2:53pm UTC](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298 "2023-01-25T14:53:35Z")\ **Posts on this page:** 15\ **Page:** 1
**Author:** ![Alejandro](https://avatars.discourse-cdn.com/v4/letter/a/ee7513/32.png) [@Alejandro](https://forum.moneyonchain.com/u/Alejandro)\ **Post date:** [January 25, 2023, 2:53pm UTC](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298/1 "2023-01-25T14:53:35Z")
**MOC Change Proposal** **Removal of leveraged tokens** **Proposal** It is proposed to remove from the MOC model the positions with leverage greater than 1, called BTCx in the protocol. **Fundamentals** Initially, the protocol was conceived with leveraged positions, but this required the limitation that all DOCs were redeemed in the settlement. To do this, an exit queue was implemented where users who wished to redeem their DOCs would enter them into that queue. When the settlement arrived, they would be redeemed and sent to their owners. This, as is evident, would introduce an average delay in redemption of 15 days. To mitigate this problem, a secondary market for DOC-RBTC had to be created. For this reason, a decentralized exchange was developed. Finally, in response to the community’s desire, the mentioned queue was eliminated and the protocol was enabled to redeem the DOCs immediately. This caused an asymmetry in the model that is detrimental to it. In addition, the leveraged positions introduced an important complexity to the model by adding a dimension, which is added to others such as the multipeg and eventually multi collateral. This great complexity is inconvenient from the point of view of the purity of the model, which should not have embedded financial characteristics. These features can and should be built into a layer outside and above the protocol. **Implementation** The implementation of this modification is very simple. A change must be made to the contract that inhibits the creation of leveraged positions. It can be done at any time after which new BTCx cannot be imposed. The BTCx that were valid at that moment will remain so until they are redeemed, which will happen at the latest in the next settlement. ---
**Author:** ![Max](https://avatars.discourse-cdn.com/v4/letter/m/e5b9ba/32.png) [@Max](https://forum.moneyonchain.com/u/Max)\ **Post date:** [January 25, 2023, 3:48pm UTC](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298/2 "2023-01-25T15:48:45Z")
I completely agree with your proposal. we can later develop a full set of leveraged tokens on top of the protocol as a different layer. ---
**Author:** ![jgsanchez](https://avatars.discourse-cdn.com/v4/letter/j/b38774/32.png) [@jgsanchez](https://forum.moneyonchain.com/u/jgsanchez)\ **Post date:** [January 25, 2023, 4:07pm UTC](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298/3 "2023-01-25T16:07:34Z")
I agree with the proposal ---
**Author:** ![Edu](https://avatars.discourse-cdn.com/v4/letter/e/cdc98d/32.png) [@Edu](https://forum.moneyonchain.com/u/Edu)\ **Post date:** [January 25, 2023, 4:42pm UTC](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298/4 "2023-01-25T16:42:31Z")
I agree. The simpler, the better. ---
**Author:** ![jweirrud](https://avatars.discourse-cdn.com/v4/letter/j/e9c0ed/32.png) [@jweirrud](https://forum.moneyonchain.com/u/jweirrud)\ **Post date:** [January 25, 2023, 4:52pm UTC](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298/5 "2023-01-25T16:52:00Z")
Excelente propuesta. ---
**Author:** ![qre](https://avatars.discourse-cdn.com/v4/letter/q/f1d935/32.png) [@qre](https://forum.moneyonchain.com/u/qre)\ **Post date:** [January 25, 2023, 4:54pm UTC](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298/6 "2023-01-25T16:54:34Z")
Great idea, Alejandro ---
**Author:** ![franciscojs](https://yyz1.discourse-cdn.com/flex035/user_avatar/forum.moneyonchain.com/franciscojs/32/153_2.png) [@franciscojs](https://forum.moneyonchain.com/u/franciscojs)\ **Post date:** [January 26, 2023, 12:52pm UTC](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298/7 "2023-01-26T12:52:49Z")
Yes. More power to BPro. Is this proposal going to be voted using the MoC tools system? ---
**Author:** ![calmbro](https://avatars.discourse-cdn.com/v4/letter/c/958977/32.png) [@calmbro](https://forum.moneyonchain.com/u/calmbro)\ **Post date:** [January 26, 2023, 3:09pm UTC](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298/8 "2023-01-26T15:09:16Z")
We will certainly miss BTCx. But greater simplicity will enable and facilitate future developments, so LFG! ---
**Author:** ![Max](https://avatars.discourse-cdn.com/v4/letter/m/e5b9ba/32.png) [@Max](https://forum.moneyonchain.com/u/Max)\ **Post date:** [February 2, 2023, 11:11pm UTC](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298/10 "2023-02-02T23:11:16Z")
yes! that is the only way to modify the protocol ---
**Author:** ![jbokser](https://yyz1.discourse-cdn.com/flex035/user_avatar/forum.moneyonchain.com/jbokser/32/228_2.png) [@jbokser](https://forum.moneyonchain.com/u/jbokser)\ **Post date:** [February 3, 2023, 2:30pm UTC](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298/11 "2023-02-03T14:30:56Z")
Here you can see the proposed technical solution for this topic: > [@Technical proposal for removal of leveraged positions](https://forum.moneyonchain.com/t/technical-proposal-for-removal-of-leveraged-positions/308#technical-proposal-for-removal-of-leveraged-positions-1): > > Technical proposal for removal of leveraged positions The technical solution to carry out what is proposed in [Removal of leveraged tokens](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298) would be this: warning Warning: some technical/coding knowledge is necessary to fully understand this document. The simplest and least invasive way to modify the protocol to removal of leveraged positions is to disable the function in charge of minting BTCx. We propose to do this by overriding the function with one that meant to always fail using a hard… ---
**Author:** ![jbokser](https://yyz1.discourse-cdn.com/flex035/user_avatar/forum.moneyonchain.com/jbokser/32/228_2.png) [@jbokser](https://forum.moneyonchain.com/u/jbokser)\ **Post date:** [February 7, 2023, 7:48pm UTC](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298/12 "2023-02-07T19:48:30Z")
📣 **Call to MOC holders** : [This proposal](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298) is being voted on. [How to vote Tutorial](https://moneyonchain.com/blog/tutorial-how-to-vote-in-money-on-chain-governance/). 📣 **Llamado a los MOC holders** : [Esta propuesta](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298) se está votando. [Tutorial de cómo votar](https://moneyonchain.com/es/blog/tutorial-votar-gobernanza-money-on-chain/). ---
**Author:** ![JuanEnCripto](https://avatars.discourse-cdn.com/v4/letter/j/a3d4f5/32.png) [@JuanEnCripto](https://forum.moneyonchain.com/u/JuanEnCripto)\ **Post date:** [February 8, 2023, 1:18pm UTC](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298/13 "2023-02-08T13:18:44Z")
¿El código de esta propuesta ha sido auditado? ---
**Author:** ![jbokser](https://yyz1.discourse-cdn.com/flex035/user_avatar/forum.moneyonchain.com/jbokser/32/228_2.png) [@jbokser](https://forum.moneyonchain.com/u/jbokser)\ **Post date:** [February 8, 2023, 6:54pm UTC](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298/14 "2023-02-08T18:54:04Z")
El contrato está auditado. No hay cambios a la programación. Solamente se elimina la función de emisión de btcx. ---
**Author:** ![Madariaganet](https://avatars.discourse-cdn.com/v4/letter/m/34f0e0/32.png) [@Madariaganet](https://forum.moneyonchain.com/u/Madariaganet)\ **Post date:** [February 9, 2023, 11:22am UTC](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298/15 "2023-02-09T11:22:23Z")
Excelente propuesta de mejora Alejandro, 100% de acuerdo!!! ---
**Author:** ![jbokser](https://yyz1.discourse-cdn.com/flex035/user_avatar/forum.moneyonchain.com/jbokser/32/228_2.png) [@jbokser](https://forum.moneyonchain.com/u/jbokser)\ **Post date:** [February 15, 2023, 7:58pm UTC](https://forum.moneyonchain.com/t/removal-of-leveraged-positions/298/16 "2023-02-15T19:58:27Z")
📣 The voting process is over: - 28.5% of the MOC tokens total supply participated in the vote. - 100% of the participants voted in favor. - No one voted against the proposal. - The change was successfully implemented.