- 77.72% of the votes are in favor to keep the GUSD ceiling stuck at $500 million.
- 22.28% of votes are for decreasing it to zero
The fluctuating votes
The community of MakerDAO, a decentralized finance platform is supporting the view of keeping Gemini’s GUSD stablecoin as a portion of Maker’s reserve. The continuing voting is checking confidence in Gemini, which has been cleared away in the latest crypto incident.
Voters are giving votes to preserve the GUSD roof at the existing $500 million to cut it to $100 million or almost zero, which will kick GUSD out of the reserve. At the time of writing, about 77.72% of the votes are in favor to keep the GUSD ceiling stuck at $500 million, at the same time, 22.28% of votes are for decreasing it to zero. However, today’s vote can not predict the final result and it may change till January 19 at 16:15 UTC, the time when voting will be ended.
The Maker protocol is dominated by a decentralized autonomous organization (DAO). In the current time, MakerDAO has $489 million in GUSD in its Peg Stability Module facility which works as a reserve system having $7 billion of assets to support its DAI stablecoin’s worth and price peg to the dollar.
Gemini is bound to pay about 1.25% annual yield to Maker since October on GUSD holdings grounded on a prior deal.
After Gemini has put a stay over withdrawals it is been under pressure leading to the voting. The company is the invention of mega-crypto investors named Cameron and Tyler Winklevoss or popularly known as the Winklevoss brothers.
Crypto investors are concerned that the misery of Gemini may undermine its GUSD stablecoin, churning Maker’s $5 billion DAI. At the present time, MakerDAO has almost 85% of the complete GUSD in circulation, which makes Gemini’s stablecoin irresistibly dependent on its connection with MakerDAO.
Other than that, the interest surrounds the GUSD’s worth being somewhat supported by cash kept at Silvergate Capital, the castellated crypto-friendly bank that faced a lot in the offshoot of various downfalls of crypto firms, and the most prominent FTX’s bankruptcy.
The Securities and Exchange Commission of the United States filed a case against Gemini Trust claiming that the significant crypto lender Genesis Global Capital sold unregistered securities to clients with the help of the Gemini Earn program. GUSD was an important part of Gemini’s Earn program which offered as high as 8% annual yield for investors giving GUSD.
Source: https://www.thecoinrepublic.com/2023/01/20/makerdao-supports-holding-gusd-stablecoin-as-a-part-of-reserve-in-early-voting/