MakerDAO announced that it had enabled a new executive proposal in its governance portal. They revealed this information via the platform’s official Twitter handle. It, however, stated that MKR holders and delegates are ready to vote on whether or not they should apply the new executive proposal.
What Are The Changes to Be Applied?
The tweet reads:
“MKR holders and delegates are ready to use their voting power to execute the proposal if they support the following change”.
Two major changes will be made to the protocol following the holders’ or delegates’ consent.
Firstly, a Debt Ceiling Instant Access Module (DC-IAM) will be enabled for RWA-007-A based on the outcome of the executive proposal. It stated:
“As per the technical assessment by the Collateral Engineering Services Core Unit for the approved MIP65: Monetalis Clydesdale, a Debt Ceiling Instant Access Module (DC-IAM) will be added to RWA-007-A if this executive proposal passes.”
Moreover, the team stated that the “DC-IAM parameters will be set as follows; Maximum Debt Ceiling (line): 250 million DAI, Target Available Debt (gap): 50 million DAI, and Ceiling increase cooldown (ttl): 1 week (604,800 seconds)”.
A second modification the DAO intends to bring to life is the GUSD PSM (PSM-GUSD-A) parameter. However, this will also undergo some changes per the governance poll. MakerDAO further added:
“Increase the Maximum Debt Ceiling (line) by 440 million DAI from 60 million DAI to 500 million DAI. Increase the Target Available Debt (gap) by 40 million DAI from 10 million DAI to 50 million DAI. Increase the Fee Out (tout) by 20 bps from 0 to 20 bps.”
It’s worth noting that the changes above are subject to the GSM Pause Delay that was set for 48 hours. This means they will only become activated on the Maker protocol after the pause delay has expired.
However, if no conclusion is made by the delegates or MKR holders in the next 30 days, the executive proposal will expire and, thus, will no longer be effective on the Maker Protocol.
MakerDAO, Maker Protocol, and MKR Tokens In Brief
MakerDAO is an open-source project managed by holders of its governance token (MKR) through executive voting and governance polling to ensure stability, transparency, and efficiency of the Maker protocol. It is among the first decentralized money markets, allowing the trustless lending and borrowing of digital assets.
Both MakerDAO and Maker protocol are Ethereum-based platforms. While MakerDAO is a decentralized organization, Maker protocol is a software platform.
MKR tokens serve as a voting share for the organization that manages DAI. While the token gives its holders voting rights over the development of Maker Protocol, they do not have access to any dividends. This is because the token growth is tied to the success of DAI.
Although every token holder has the right to vote on changes to the platform, their governing power depends on the size of MKR staked.