Hello @Terminada
Shen can’t have a free floating price because if reserves drop to 100%, then you would be able to mint infinite amount of Shen for free (or nearly free). Here is Shen price formula from the white paper (RC is used as Reserve Coin = SHEN).
Coti fees aren’t the culprit.
When the price hits this parameter bottom all incentive is gone to mint Shen because you can buy it for cheaper from secondary markets. Also, at below 400% you can’t even mint Djed, only sell. This means that protocol is set up to shrink every time these conditions are in place. No change in fees will fix this.
Lets consider these 3 possible states.
- Below 400% - there is no incentive to mint Shen because you can get it cheaper at open market
- Between 400% and 800% - there is incentive to mint Shen ONLY IF you believe that price of ADA will rise
- Above 800% - can’t mint Shen.
As you can see the incentives to mint (or hold) Shen are very limited by protocol design.