{"id":306184,"date":"2023-03-07T16:02:28","date_gmt":"2023-03-07T16:02:28","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=306184"},"modified":"2024-02-24T19:38:04","modified_gmt":"2024-02-24T19:38:04","slug":"makerdaos-governance-token-sees-a-37-decrease-in-24h-trading-volume","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/makerdaos-governance-token-sees-a-37-decrease-in-24h-trading-volume\/","title":{"rendered":"MakerDAO’s governance token sees a 37% decrease in 24H trading volume"},"content":{"rendered":"

MakerDAO, the governance token behind the fourth largest stablecoin by market capitalization DAI, has decreased in trading volume by 37% and seen a 3.7% dip in token price over the last 24 hours.<\/p>\n

\"Maker
(Source: Coin Market Cap)<\/figcaption><\/figure>\n

The move follows significant changes proposed to Maker's governance structure.<\/p>\n

Following the Tornado Cash sanctions last year, Rune Christensen, the co-founder of MakerDAO, warned of a similar fate for the decentralized stablecoin platform.<\/p>\n

In Christensen's view, government authorities were bound to target MakerDAO sooner or later. A move that prompted the introduction of the Endgame plan to enhance censorship resistance.<\/p>\n

Maker's Endgame proposal<\/a> aims to strengthen its decentralized finance (DeFi) platform operating on the Ethereum blockchain allowing users can create and trade stablecoins backed by collateral in cryptocurrencies with the governance of the platform and its stability maintained by the native token (MKR).<\/p>\n

MakerDAO unveils Endgame tokenomics<\/h2>\n

The new system proposes the division of the DAO into smaller units known as MetaDAOs, each with distinct tokens and objectives, while limiting centralized assets backing DAI to 25% and introducing negative interest rates to reduce liquidation risks.<\/p>\n

\"MakerDAO
Launch Overview Source: Maker Endgame Documentation<\/figcaption><\/figure>\n

Criticism of Maker's plan<\/h2>\n

However, critics of the plan worry that it creates a potential algorithmic death spiral for DAI similar to what happened during the Terra\/Luna UST collapse.<\/p>\n

\n

Hmm looks a lot like backing $UST<\/a> with its governance token $LUNA<\/a>. <\/p>\n

Did @stablekwon<\/a> secretly infiltrate @MakerDAO<\/a>? https:\/\/t.co\/3u6NzOMkPK<\/a><\/p>\n

— Arthur Hayes (@CryptoHayes) February 24, 2023<\/a><\/p><\/blockquote>\n