A decentralized autonomous organization is an entity in the crypto value chain that does not have a management team. Important decisions in this ecosystem are subject to the judgment of members of the crypto community. MakerDAO, which is one of the major players in this segment, has just submitted a proposal.
A proposal that will make crypto more attractive
MakerDAO, the decentralized autonomous organization behind the stableocin DAI has submitted a proposal by community vote. This relates to the increase in the savings rate (DSR) of the DAI. This is the interest rate the protocol pays on DAI deposits. According to the proposal, the crypto community should consider four options: 1%, 0.75%, 0.5% and 0.25%. But already, a survey available on social networks shows that 99% of voters are in favor of a 1% increase.
Initially, the vote should take place on November 30. It will take place on December 2. As for the executive vote, it goes from December 7 to December 9.
The DAO also expected voters to vote to maintain the current rate of return, which is 0.01%. Concretely, the operation will make the stablecoin more attractive. Upstream, MakerDAO used part of its $7.7 billion to invest in many projects, in traditional assets like government bonds etc.
“We made this proposal to update DAI staking returns. This, so that they are equivalent to the stablecoin returns offered by other decentralized finance (DeFi) protocols. For example, we can cite the Aave loan protocol, but also Compound. A higher savings rate would also ensure that there is enough liquidity to keep the DAI stable”. This is essentially what the Management Committee wrote in the proposal.
Increasing the DAI savings rate would increase the competitiveness of the stablecoin. It will also help mitigate capital outflows from crypto to traditional financial markets, according to MakerDAO contributors.
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