July 25, 2024
Blockchain News

MakerDAO Proposes New Changes to the Protocol, Details Inside

MakerDAO’s [MKR] governance has been quite busy in terms of writing new proposals over the previous few months. The protocol has worked to improve the platform for users.

On April 10, the MIP102c2-SP2 proposal was submitted to a vote. The proposal’s goal was to change the Maker Constitution and Scope Frameworks, which define how the Maker Protocol functions.

The modifications were defined as “long-term focused” and were made in March.

At the time of writing, 87.32% of registered voters have voted in support of the proposition. The voting period is set to expire on April 24.

If the proposed revisions include changes to the Maker Constitution, this could have an influence on the platform’s governance structure and the decision-making processes used to manage the protocol.

Changes to the Scope Frameworks may have an influence on the sorts of collateral accepted by the platform, which may have an impact on the protocol’s overall stability and security.

Additionally, several MakerDAO protocol parameters were altered. Stability Fees, Target Available Debt, and Ceiling Increase Cooldown for numerous collateral kinds, including ETH-A, ETH-B, ETH-C, and WSTETH-A, are among the modifications.

Stability fees are costs levied to borrowers in order to keep the Maker Protocol stable. The maximum number of DAI that can be issued against a cryptocurrency used as collateral is known as the Target Available Debt, and the time period between successive increases in this maximum amount is known as the Ceiling Increase Cooldown.

The Stability Fees, Target Available Debt, and Ceiling Increase Cooldown for various assets were all increased in an effort to improve the protocol’s status. Despite enhancements to the MakerDAO protocol, demand in the MKR coin has remained low.

Furthermore, Santiment data shows that the price of MKR has fallen in recent days.

In addition, the velocity of the MKR token has decreased. This meant that MKR was not being traded as frequently as it had been previously. Furthermore, the token’s network expansion has slowed, indicating a lack of interest in MKR from new addresses.