MakerDAO Community Offers New Governance Token Model

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The MonetSupply team has recently submitted a proposal to the community of the DeFi project MakerDAO to change the governance and staking model using stkMKR tokens.

According to the authors of the proposal, the stkMKR tokenomics mechanism resembles the approach implemented in Cosmos, as well as solutions with stkAAVE and xSUSHI assets.

The initiative proposes the use of stkMKR to replace MKR and represent the latter’s non-transferable share in project management.

According to the proposal, the changes in tokenomics are intended to encourage participation in governance, increase the profitability of staking MKR, reduce the risk of management attacks as well as increase resilience to credit losses for MKR holders.

It will be possible to get stkMKR through staking MKR as well as from part of the coins burned after surplus auctions.

Remember that MakerDAO devs handed over project management to the community in 2020.