The anticipated proposal from CoinShares was recently reported to get rejected by the community in the voting on MakerDAO’s platform. The proposal intended to invest the community’s funds worth 100 million USD to 500 million USD.
For investment, the digital asset investment firm would have chosen a portfolio consisting of corporate debt securities and bonds backed by the government. This investment strategy was expected to generate yield.
The total number of votes on MakerDAO’s voting platform was 78,533. Out of this, about 56,740 MKR votes, about 72.43% of the total votes, were in favor of rejecting the proposal. While slightly more than 13% of votes were in favor of the proposal and around the same number of votes abstained from voting.
If the voting would be in favor of CoinShares then the firm would be able to offer the annual percentage yield (APY) more than the SOFR interest rate. In addition, the yield would be available in the most preferred assets within the community including DAI, USDC and USDT. The rewards would then be eligible to withdraw on-chain.
MakerDAO Community Members Citing Reason for Rejection
Several voters casted their vote against the proposal and also explained the motive behind doing so. LIama, for instance, rejected the proposal voting against it deemed that it was extremely par the risk tolerance of protocol.
Product research platfromFeedblack Loops LLC also shared that given the condition that governance has put up voting on more than available USDC. Rejecting such proposals would signify moving forward while everything else is getting in order.
In addition, it noted that the CoinShare had been under several discrepancies but had done its job well related to making the complications within the proposal simple. Its optimistic approach towards revision or possibility to take different courses was also noted.
Although the recent proposal got rejected in the voting of the MakerDAO community, it did pass several proposals.
MakerDAO Accepted Coinbase Prime Custodian Proposal
One proposal included adding the prominent institutional prime brokerage firm, Coinbase Prime as custodian. The MakerDAO community chose it as custodian of its USDC stablecoin worth 1.6 billion USD.
MakerDAO is the largest holder of the stablecoin and the community approved the custodianship with majority consent votes. This made the way for the community making them eligible to earn rewards on USDC up to 1.5%. These rewards would be generated keeping the funds within custody of Coinbase Prime.
The custodian provider stated that it will praise the benefits for the community along with praising the efforts made by MakerDAO for the growth of the stablecoin ecosystem. It showcased belief in stablecoins stating that they will play a crucial role for creating a more efficient, open and fair financial system. This would be acting as to fill the void between the crypto industry and the traditional markets.
Source: https://www.thecoinrepublic.com/2022/11/29/makerdao-community-rejects-coinshares-proposal/