MakerDAO Proposes DAI Savings Rate (DSR) Reduction to 6%
CryptoNewsTerminal Staff09 Aug, 2024
MakerDAO Proposes DAI Savings Rate (DSR) Reduction to 6%
MakerDAO (MKR), the decentralized autonomous organization responsible for the stablecoin DAI and the Maker Protocol, is considering a proposal to lower the DAI Savings Rate (DSR) from its current ~8.5% to 6%. The proposed changes aim to enhance the stability and sustainability of the Maker Protocol. In addition to adjusting the DSR, the proposal also includes updates to the Savings Rate benchmark parameter, the base interest rate, and the implementation of an Emergency Dai Stability Rate (EDSR). These measures are designed to improve the protocol's resilience and efficiency in managing DAI's stability mechanism. The DSR adjustment aims to balance the demand and supply of DAI by reducing the incentive for users to hold DAI in savings. This, in turn, could help maintain DAI's peg to the US dollar and reduce the risk of over-issuance. MakerDAO's governance community will vote on the proposal to determine its implementation. If approved, the changes would be a significant step in optimizing the Maker Protocol and ensuring the long-term stability of DAI.
