A dunnage conversion system for making a coil of dunnage from a sheet stock includes a coiler, a movable dancer upstream of the coiler and interposed in a path of the sheet stock, and a controller communicatively coupled to each of the coiler and the movable dancer. The coiler is configured to wind the sheet stock, and the controller is configured to control the speed of the coiler based on the position of the movable dancer to control tension of the sheet stock upstream of the coiler. The sheet stock drawn about the movable dancer may be a slit-sheet stock having a plurality of slits configured to expand under tension applied in a feed direction. The controller may be configured to control expansion of the slit-sheet stock upstream of the coiler allowing conversion of the sheet stock into a coil of relatively less dense dunnage prior to or during winding.