Oct 24, 2022 - Economy

MakerDAO votes to approve Coinbase proposal

Illustration of a golden scroll on a golden pedestal in a golden room.

Illustration: Aïda Amer/Axios

MakerDAO governance token holders on Monday overwhelmingly voted in favor of Coinbase Global's proposal that would generate a tidy source of revenue for the decentralized finance (DeFi) giant.

Why it matters: Coinbase's proposal to give MakerDAO a 1.5% yield in exchange for holding up to $1.6 billion of the group's USD coin with the exchange, promises to be a solid source of revenue for the DeFi giant.

Details: 109,944 mkr were put toward saying "yes," or about 75% of the total vote, some 14% voted "no," and 11% abstained.

What they're saying: Chris Blec, a delegate of MakerDAO, tweeted that he was among the naysayers to the proposal. "There's basically no chance that this proposal does not pass," Blec said Monday morning in a video posted hours before the vote closed.

  • The Coinbase proposal demonstrates "what's going on with MakerDAO and one of the biggest problems with it," Blec said.
  • "If this proposal passes, it's— the final nail's in the coffin for MakerDAO and dai as far as centralization goes, as far as censorship resistance goes," he said. "With 84% dai backed by usdc, it's already been very centralized...My point is there is no coming back from this."

What others are saying: Comments posted to the vote were positive, with one saying that agreeing to Coinbase's proposal would be "an important next step to getting the protocol back to profitability."

The bottom line: It's a done deal.

  • That's money for MakerDAO, but also a custody boost for Coinbase.
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