{"id":416774,"date":"2022-03-16T08:12:54","date_gmt":"2022-03-16T05:12:54","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/makerdao-community-proposal-to-replace-mkr-governance-token\/"},"modified":"2022-03-16T08:12:54","modified_gmt":"2022-03-16T05:12:54","slug":"makerdao-community-proposal-to-replace-mkr-governance-token","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/makerdao-community-proposal-to-replace-mkr-governance-token\/","title":{"rendered":"# MakerDAO community proposal to replace MKR governance token"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a25713ba79f8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a25713ba79f8\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/makerdao-community-proposal-to-replace-mkr-governance-token\/#%E2%80%9D_MakerDAO_community_proposal_to_replace_MKR_governance_token_%E2%80%9C\" >&#8221; MakerDAO community proposal to replace MKR governance token &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_MakerDAO_community_proposal_to_replace_MKR_governance_token_%E2%80%9C\"><\/span>&#8221; MakerDAO community proposal to replace MKR governance token &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-128018ef>The community behind decentralized stablecoin platform MakerDAO is mulling over a major tokenomics shift that could replace its governance token, MKR.<\/p>\n<p>A proposal was made on the MakerDAO forum by community leader \u201cmonet-supply\u201d on March 14, outlining an alternative token economic mechanism. If the<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/forum.makerdao.com\/t\/stkmkr-maker-staking-and-tokenomics-revision\/13890\"> proposal<\/a> passes a full governance vote, the protocol could replace its current governance token, MKR, with a new token called stkMKR.<\/p>\n<p>There were many responses to the proposal within just a few hours of it being posted, most of which were positive and regarding the technicalities of the solution. From the proposal and discussion stage, it will need to be submitted as a MIP (Maker Improvement Proposal) for a formal vote by MKR holders which usually takes two weeks. <\/p>\n<p>The staking proposal addresses some issues and inefficiencies with the current tokenomics model, which operates a \u201cbuyback and burn\u201d mechanism. It was suggested by \u2018monet-supply\u2019 that there are several drawbacks to the existing mechanism, including a lack of targeted incentives since buyback and burn returns all capital to MKR holders.<\/p>\n<p>There is also a \u201cweak crypto narrative\u201d according to \u2018monet-supply\u2019 who said that MKR issuance could be put towards improving the protocol. The current system also has limited deterrence against governance attacks or voting manipulation.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">\u2692\ufe0f <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MonetSupply?ref_src=twsrc%5Etfw\">@MonetSupply<\/a> presented an idea of an alternative token economic mechanism that could supplement the current MKR buyback value accrual system.<\/p>\n<p>stkMKR? Read the entire thread:<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/1hEORZTblu\">https:\/\/t.co\/1hEORZTblu<\/a><\/p>\n<p>\u2014 Maker (@MakerDAO) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MakerDAO\/status\/1503442920799670274?ref_src=twsrc%5Etfw\">March 14, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nThe proposed solution is a new stkMKR token which would replace MKR as the core governance token of MakerDAO. It would act as a staking or bonding token issued to those who have deposited MKR for governance purposes.<\/p>\n<blockquote><p>\u201cstkMKR will be non-transferable, and represents MKR staked in governance. Staked tokenholders will receive a share of MKR tokens purchased through surplus auctions, so stkMKR will be backed by an increasing amount of MKR over time.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-03\/ec5583fb-d99a-4890-8414-9c1ddebea8a9.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Surplus utilization mechanism. Source: forum.makerdao.com<\/em><\/figcaption><\/figure>\n<p> \u2018Monet-supply\u2019 said the rewards mechanism has been improved upon, and there will be greater incentives to stake using the new system.<\/p>\n<p>MakerDAO allows users to deposit crypto assets as collateral to generate the decentralized stablecoin DAI. This can then be used elsewhere, such as other DeFi protocols or liquidity pools. The DAI is burnt when the \u201cloan\u201d is repaid, and the collateral is withdrawn.<\/p>\n<p><strong><em>Related:<\/em><\/strong><strong><em> <\/em><\/strong><strong><em>Shift toward full decentralization pushes Maker (MKR) price above $4K<\/em><\/strong><\/p>\n<p>MKR prices were trading flat on the day at $1,766 at the time of writing, according to CoinGecko. However, the token has dropped 11% over the past fortnight and is currently down 72% from its May 2021 all-time high of $6,292. <\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/makerdao-community-proposal-to-replace-mkr-governance-token\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; MakerDAO community proposal to replace MKR governance token &#8220; The community behind decentralized stablecoin platform MakerDAO is mulling over a major tokenomics shift that could replace its governance token, MKR. A proposal was made on the MakerDAO forum by community leader \u201cmonet-supply\u201d on March 14, outlining an alternative token economic mechanism. If the proposal&#8230;<\/p>\n","protected":false},"author":1,"featured_media":416775,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDMvZGIyN2Y4NjktYzZkZi00NDgyLWFjNGItZGYwZGU1YWNlZDBkLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74868,77655,76700],"class_list":["post-416774","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-defi","tag-maker","tag-makerdao"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/416774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=416774"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/416774\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/416775"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=416774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=416774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=416774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}