Using Oracles for better Governance.
Maybe another idea to add more security to the smart contract, and regarding the high demand would be to have a reserve ratio between 800 and 1600%. If the fees are 2x higher, the interest in the contract should be the same, as investors in SigRSV probably came for the share of the fees and not to take a risk. And if investors are paying 2% fees, they will probably want to stay in the contract for the long term, which means that they also don’t want to be to vunerable to negative price changes over the long term. The price could at any time be divided by 8, so that really the maximum risk that the contract should allow people to enter in the contract. That would then also “lock” more ERGs out of circulation, which would be benficial for the price. With fees of 2.5%, you could even go to 1000%-2000% minimal reserve and still get the same interest from investors and still have a lot better prices than competitors on Ethereum. The governance token could then adjust the fees at a later stage if needed, but as market conditions regarding fees, interest rates and anything else could change drastically. Probably that the best solution would be to have a mix between oracles and governance token. For example oracles must answer Yes to the question if there is a problem with parameters X, and the if yes, the voting can occur only on parameter X. Oracles could also be used to validate that there is no known hacking or conflict of interest occuring during the voting process, or it is stopped and delayed.
The smart contract needs real world data adapted to real world situations which are infinitly different and complex, but the smart contract must have the ability to categorise them, simplify them into some parameters and decisions and have the ability to update or even auto-update later on each parameter once we have more experience. Upgradability in any form, even to a new smart contract respecting some very precise conditions like reserve ratios could also help to keep the smart contract valuable over the long term.
So the process would be to first ask vote through a minimum threshold, then asking validation from oracles that there is really a problem, then vote on the specific improvement proposal.
Once ERG market cap is a lot higher, we might also use this advantage to reduce the fees, as it will be more difficult for anyone to manipulate the price.