MakerDAO is set to temporarily shut down its Teleport L2 Gateways

• Through a new proposal, MakerDAO wants to temporarily shut down its Teleport L2 Gateways to fix the identified issue.
• MKR has seen a dearth of demand in the last 24 hours.

MakerDAO, through its Governance Facilitator(s) and Starknet Engineering and Protocol Engineering Core Units, has proposed to redeploy its Teleport Layer 2 (L2) Gateways as part of several changes to be implemented to the DeFi protocol.

This decision was taken due to a minor issue that was identified.

Read Maker [MKR] Price Prediction 2023-24

In a forum post made by a Protocol Engineering Core Unit member ten days ago, a minor issue was detected with MakerDAO’s DAI Teleport (dss-teleport), which could temporarily block some Layer 1 (L1) teleport withdrawals.

DAI Teleport is a service provided by MakerDAO that enables users to transfer their DAI tokens from the Ethereum mainchain (L1) to a Layer 2 scaling solution, such as Optimism or Arbitrum, and back again. 

The purpose of DAI Teleport is to allow users to benefit from the faster and cheaper transaction times offered by Layer 2 solutions while still having the security of the Ethereum mainchain. 

To fix the identified issue, MakerDAO proposed a redeployment of its Teleport L2 Gateways, which might result in a temporary shutdown of the Teleport bridges on Optimism, Arbitrum, and Starknet.

Other changes to be implemented with the proposal include the transfer of 138,894 DAI to the Tech-Ops Core Unit of the DAO.

Additionally, a total of 146,559 DAI will be transferred to twelve recipients as part of the offboarding process of the Governance Communications Core Unit. The transfer will ensure that the recipients are compensated for their contributions to the Maker Protocol.

Also, 209,000 AI will be transferred to a Special Purpose Fund posted by the Strategic Finance Core Unit. This fund will be used to finance various initiatives that are deemed important for the growth and development of the Maker Protocol.

How much are 1,10,100 MKRs worth today?

MKR holders are not making it rain

Per data from Coinglass, MKR’s Open Interest surged significantly in the last 24 hours. As of this writing, the OI value was $13.86 million. It increased by 45% over the last day.

Source: Coinglass

An increase in an asset’s Open Interest indicates that there is a growing interest and demand for the asset, and it can be seen as a bullish sign for the asset’s price.

While MKR’s price saw some growth in the last 24 hours, it was minor. Per data from CoinMarketCap, the alt’s value only rose by 1%. 

The on-chain assessment revealed that this was due to a drop in new demand for the token. Per Santiment, new addresses created on the MKR network declined by 80%.

Source: Santiment