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HomeAltcoinsMakerDAO leader suggests MKR be replaced as the governance token

MakerDAO leader suggests MKR be replaced as the governance token

On March 14, the MakerDAO community leader “monet-supply” proposed an alternative token economic mechanism on the MakerDAO forum. The proposal intends to replace the existing governance token, MKR, with a new token called stkMKR. If the proposal is approved, it will result in a tokenomic shift in MakerDAO.

The community erupted immediately after the suggestion was made, with numerous reactions, most of which were in favour of the initiative. Following the development, the suggestion must be approved as a MIP (Maker Improvement Proposal) before it can be voted on by MKR holders, a two-week procedure.

The idea aims to solve a number of flaws with the existing MakerDAO tokenomics, which rely on the “buyback and burn ” method. According to Monet-supply, the plan would address concerns such as a lack of targeted incentives since all money is returned to MKR holders through the repurchase and burn mechanism.

Monet also claims that the existing system provides little disincentive against assaults on the government, particularly when it comes to vote manipulation.

Aside from revamping the tockenomics process, the ‘monet-supply’ proposal recommends establishing a new token stkMKR to replace the MKR as the MakerDAO’s governance token.

According to the plan, the stkMKR token would serve as a bonding or staking token and would be distributed to those who deposit MKR only for governance reasons.

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Jeewan Singh
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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