MakerDAO Community Votes to Hike DAI Rewards to 1%

Some 71% of voters favored hiking the DAI Savings Rate to 1%, the highest option offered in the voting.

AccessTimeIconDec 1, 2022 at 5:28 p.m. UTC
Updated Dec 12, 2022 at 4:03 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The community of MakerDAO, one of the largest decentralized finance (DeFi) protocols, voted to increase the rewards rate for its DAI stablecoin to 1%.

Some 71% of voters favored a 1% hike, the highest available option, during the voting, which ended Thursday.

The rate increase will come into effect on Dec. 13, according to a statement from MakerDAO.

Increasing the rewards known as the DAI Savings Rate (DSR) means that investors can earn a 1% annualized return on their DAI holdings, giving an incentive for investors at a time when decent yields in crypto are scarce. The return is still much lower than what is available for traditional yield-generating assets such as U.S. government bonds.

MakerDAO issues the $5 billion DAI stablecoin, which is backed by more than $7 billion worth of assets in its reserves. The protocol is led by a decentralized autonomous organization (DAO), in which holders of the protocol’s governance token maker (MKR) can vote on proposals.

UPDATE (Dec. 12, 15:45 UTC): Adds date when rate increase will apply in third paragraph.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Krisztian  Sandor

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.