This week, MakerDAO’s MKR token holders will cast a vote to determine the parameters of MakerDAO’s most ambitious upgrade yet. MakerDAO’s first stablecoin, which is backed only by Ethereum, will be replaced by Multi-Collateral Dai, which will be collateralized by multiple assets. At launch, these assets will be Ethereum and Basic Attention Token, but new kinds of collateral will be decided by future votes. This upgrade also includes the Dai Savings Rate (DSR) and several security features.
We voted in favor of migrating from Single-Collateral Dai to Multi-Collateral Dai.
We have long been believers in the power of cryptonetworks, and the fact that they are governed by a community of token holders who have a voice in the form of a vote. Successful governance of the Maker ecosystem requires the participation of the broader Maker community. The addition of several new risk parameters — multiple collateral types, the Dai Savings Rate (which rewards Dai holders with variable interest), and the new auction-based liquidation mechanism — increase the complexity and demands of governance. These new features are critical governance tools, necessary for improving Dai’s stability, mitigating systemic risks, and accelerating the growth of the Maker ecosystem.
We will be following the migration closely and are prepared to vote on changes to system parameters to facilitate it. And we’re excited to be part of building a more accessible, inclusive, and stable global financial system.
