DAI/USD: MakerDAO (DAI) Prepares for the Future, Introduces “The Maker Constitution”
- MakerDAO has passed “The Maker Constitution”, which seeks to safeguard the stability of its DAI stablecoin.
- DAI is the fourth largest stablecoin in the world by market cap, with USDT still in the lead.
- DAI briefly detached from its USD peg two weeks ago after the failure of Silicon Valley Bank.
Stablecoins haven’t exactly been upholding their ‘stability’ in recent times. Since the collapse of UST in May last year, which sent the value of the crypto industry into freefall, stablecoins have been coming under increasing scrutiny for the methods they use to ensure they remain pegged to their fiat currency counterpart. MakerDAO, the issuer of the world’s fourth largest stablecoin by market cap, has announced a new approach.
Safeguarding the future
The issuer of DAI, MakerDAO has passed a new governance proposal dubbed “The Maker Constitution”, with 76% majority of governance token holders voting in favor. The proposal will reportedly work to control the risk associated with DAI, and will implement new methods of ensuring the stablecoin’s peg to the USD. The proposal also makes improvements to the way in which token holders can participate in governance of the protocol, by implementing a new anonymous class of token holders who will be responsible for policing corruption.
How’s DAI doing?
As it stands, DAI is the fourth largest stablecoin by market cap – which is currently sitting at around $5.3bn. The largest is still Tether (USDT) by a considerable margin, with a market cap of almost $80bn. Whilst DAI has a pretty strong track record of stability, it did suffer a de-peg fairly recently just 2 weeks ago, which saw the token reach a low of just $0.91, amid stablecoin fears relating to Circle’s association with the failing Silicon Valley Bank.