MakerDAO Set to Vote on Proposal to 'Offboard' WBTC
CryptoNewsTerminal Staff12 Sep, 2024
MakerDAO Set to Vote on Proposal to 'Offboard' WBTC
MakerDAO (MKR), formerly known as Sky, is set to vote on a governance proposal to fully ‘offboard’ wrapped Bitcoin (WBTC) from its ecosystem. The proposal was put forward by DeFi risk management firm B.Labs, which cited centralization concerns stemming from Tron (TRX) founder Justin Sun’s involvement in the project. The proposal outlines a five-step process to offload WBTC, starting on Jan. 26. MakerDAO’s native lending facility, Sparklend, currently has $73 million in WBTC-collateralized loans, while Maker Vaults hold $127 million in WBTC debt. If approved, the proposal would see WBTC gradually replaced by other decentralized Bitcoin (BTC) tokens such as renBTC and sBTC. The move is seen as a step towards reducing MakerDAO’s exposure to centralized entities and increasing the decentralization of its ecosystem.
