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14:18:25:22
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MakerDAO Community Votes to Hike DAI Rewards to 1%
Some 71% of voters favored hiking the DAI Savings Rate to 1%, the highest option offered in the voting.
Updated Dec 12, 2022, 4:03 p.m. Published Dec 1, 2022, 5:28 p.m.
The community of MakerDAO, one of the largest decentralized finance (DeFi) protocols, voted to increase the rewards rate for its DAI stablecoin to 1%.
Some 71% of voters favored a 1% hike, the highest available option, during the voting, which ended Thursday.
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The rate increase will come into effect on Dec. 13, according to a statement from MakerDAO.
Increasing the rewards known as the DAI Savings Rate (DSR) means that investors can earn a 1% annualized return on their DAI holdings, giving an incentive for investors at a time when decent yields in crypto are scarce. The return is still much lower than what is available for traditional yield-generating assets such as U.S. government bonds.
MakerDAO issues the $5 billion DAI stablecoin, which is backed by more than $7 billion worth of assets in its reserves. The protocol is led by a decentralized autonomous organization (DAO), in which holders of the protocol’s governance token maker (MKR) can vote on proposals.
Read more: DeFi Giant MakerDAO Voting on Hiking DAI Stablecoin Rewards
UPDATE (Dec. 12, 15:45 UTC): Adds date when rate increase will apply in third paragraph.
Krisztian Sandor
Krisztian Sandor is a U.S. markets reporter focusing on stablecoins, tokenization, real-world assets. He graduated from New York University's business and economic reporting program before joining CoinDesk. He holds BTC, SOL and ETH.
