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MakerDAO Token Holders’ Vote Could Increase Fee For Ethereum-based Stablecoin

A weekly developer call of the MakerDAO, the open-source developer group of decentralized, ETH-backed stablecoin DAI, came to the understanding that the coin’s dollar peg was reaching its “breaking point” due to a lack of organic demand. Concerns at the meeting mostly revolved around the DAI’s ability to hold its peg at a time when […]

Source link: MakerDAO Token Holders’ Vote Could Increase Fee For Ethereum-based Stablecoin



A weekly developer call of the MakerDAO, the open-source developer group of decentralized, ETH-backed stablecoin DAI, came to the understanding that the coin’s dollar peg was reaching its “breaking point” due to a lack of organic demand.

Concerns at the meeting mostly revolved around the DAI’s ability to hold its peg at a time when there’s a speculative drop in its market value.

It is this concern that saw the founder of MakerDAO Rune Christensen suggest that stakeholders vote to determine whether the team should hike the fees for the dollar-pegged coin and in the process help resolve issues surrounding its liquidity.

MakerDAO launched the poll on Monday, in which holders of the MKR governance tokens are expected to vote on the question of the “Dai Stability Fee.” The vote will be to determine whether the fee should be raised from 1.5 percent to 3.5 percent.

As well as other stablecoins in the crypto space, the DAI has seen fluctuations in its prices over most of 2019, with data at showing that prices have so far dropped to $0.98 or risen to $1.02.

While DAI has remained consistent enough on Coinbase Pro and Bitfinex at about $0.98 since January, the bouncing seen on the global markets is a cause for concern.

MakerDAO’s risk management lead Cypress Younessi said during a public call that although the dollar-pegged token was giving a “good deal,” the pressing concern at the moment is to get the price locked at least until the right kind of stability in fees is reached.

Last month, MKR holders voted twice to increase the fee by 0.5%, but according to an official Reddit post, that increase had a “negligible” impact on correcting the difference between the stablecoin’s value and the peg.

As such, the project’s risk team felt there needed to be an increment of 2% “until the trend in the peg has been corrected.”

Increasing the fee isn’t going to impact just MakerDAO, but several other applications that rely on the increasingly popular stablecoin’s value and fee, including Gitcoin that regularly denominates and pays its bounties in DAI coins.

Other applications that leverage the DAI as their primary medium of transactions are payment channel platforms. An example is the Connext Network which is soon launching its mainnet on the Ethereum platform.

Collateralized DAI

At the moment, MakerDAO smart contracts have seen users lock over 2 million ether tokens, with these accounting for about 2 percent of total ETH supply.

However, increased adoption for the DAI token continues to occur via “collateralized debt positions” (CDPs), which requires that a user’s locked ether be three times the amount of DAI they wish to withdraw.

As a stablecoin withdraw-able for fiat, the DAI token has become extremely popular with ETH holders who want loans to pay off bills.

But this has had a broader effect in destabilizing the network- principally due to the spike in loan demands that does not correspond to the demand for DAI for organic purposes.

MakerDAO has noted that the widening gap brought about by this scenario has seen contributors and employees look to increase the token’s use cases.

Some of the new usages happen behind the scenes at companies that offer crypto-financial services when handling backend value transfers.

Allegedly, most people who hold the stablecoin end up liquidating it within an hour or so of possessing it. But perhaps this is directly related to another problem impacting ether collateral in DAI CDPs.

For instance, a CDP will automatically liquidate when ETH prices decline to value below 150 percent, but even that doesn’t guarantee that a user will recoup all of their collateral.

MKR Token holders

A spokesperson for MakerDAO revealed that only those individuals and entities that hold MKR tokens would have the opportunity to vote, mainly on matters relating to the addition or removal of data sources.

Under current circumstances, the power to vote is a crucial aspect given the debate regarding an increment in the stablecoin’s debt ceiling.

If markets drop significantly, then liquidating ether collateral becomes a necessity, although Christensen maintained that this was only “hypothetical” and a “worst-case scenario.”

Still, it remains to be seen how many MKR holders will participate in the latest vote, given that those who voted in the last two rounds were less than 10 percent.

The DAI needs a diverse ecosystem of token holders and other stakeholders to pull together for it to make it in the industry. However, therein lies a problem as a majority of the tokens are owned by very few people.

For instance, Etherscan shows that the top three holders of the token control 55 percent, with one of this owning roughly 27 percent. a16z fund’s Andreessen Horowitz owns 6 percent, while hedge fund 1confirmation also has a significant amount of MKR tokens.

While the rest of the top 10 holders haven’t been publicly listed, the trend is that most MKR is in the hands of very few people. ConsenSys and the Ethereum Foundation are also thought to hold significant portions although information to that effect isn’t available.

Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.

Source link: MakerDAO Token Holders’ Vote Could Increase Fee For Ethereum-based Stablecoin



Increasing Stability of the Utopia P2P Network



The number of full nodes in the Utopia P2P ecosystem has passed the 30,000 mark.
This means that more than 30,000 nodes are working for the security and resilience of the network.


The number of full nodes within the Utopia decentralized ecosystem has reached 30,000 and is moving forward. This number is an indicator of the stability of internal processes and a guarantor of reliability.

Nodes in the blockchain have one of the most important roles – they are responsible for checking the legitimacy of blocks, approving transactions, and ensuring the smooth operation of the network. To a large extent, this responsibility falls squarely on the full nodes. In other words, the more nodes involved in supporting the network, the harder it is to trick, hack or crash the system. As a consequence, better connection quality, safer operations, cleaner and more honest mining.

When you install and run Utopia ecosystem mining bot, you automatically increase the number of nodes, thereby contributing to the stability of the network. Everyone involved in this process receives Crypton Cryptocurrency (CRP).


Crypton is the unique currency of the Utopia peer-to-peer network. Coin mining does not burden your PC and is eco-friendly as it is done through an ecosystem. All you need to mine is a computer and a bot installed.

By launching the app, you start receiving collective rewards every 15 minutes – that’s how long it takes to form a new block. Users also receive a Proof of Stake reward to their minimum monthly balance. CRP is already listed on a number of exchanges and is available for sale.

– Anyone can mine, send and receive Cryptons. Cryptocurrency mining is available to all Utopia ecosystem users. CRPs are provided for being on the network and. Mining participants are rewarded for supporting the ecosystem – forwarding packets and providing RAM for caching purposes,” according to 1984 Group, the developer of the Utopia P2P network.

At the time of writing, 4,672,181.975674 CRPs have already been mined by Utopia network users, with the total number of transactions steadily approaching 300,000.


The creators of Utopia Network have built an independent ecosystem, which doesn’t ask for your personal information even when you register and doesn’t track your activities or geolocation.

The server is basically not involved in data transfer and storage. The Curve25519, XSalsa20, and Poly1305 algorithms are used to encrypt, sign, and authenticate packets, objects, and peer-to-peer connections.

This way, you don’t have to worry about the security of your personal data and are free to use the Utopia ecosystem. In addition to in-network mining there are anonymous messenger, browser, email, and e-wallet. All functionality is focused on user anonymity and is available to all registered in the Utopia P2P decentralized network.

As far as we know, in the near future the developers will release an encrypted anonymous Utopia ecosystem app on IOs and Android.

Download Utopia:
Crypton Exchange:

Click here for Free Trial.

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Investors must brace themselves as Bitcoin Cash goes downhill in the coming weeks



Though off to a strong start in September, Bitcoin Cash seemed to have taken its foot off the pedal. Caught between two corrective phases on 7 and 20 September, the price steadily declined after forming a local peak above $800.

Moreover, BCH’s latest drawdown towards 38.2% Fibonacci level identified vulnerabilities in the market which could extend all the way back to July lows. With sentiment also expected to be sour due to a recent death cross, BCH bulls certainly faced a tall mountain to climb. At the time of writing, BCH traded at $549.2, down by 4.8% over the last 24 hours.

BCH Daily Chart

Source: BCH/USD, TradingView

A near 16% decline from the 50% Fibonacci level pushed BCH to the all important 38.2% Fibonacci level. Back in late-June, BCH suffered a 31% sell-off after it pierced below the aforementioned level on the back of a descending triangle. Hence, to dissuade short-sellers from the market, BCH would need to keep its neck above the $540-mark.

However, certain factors in the market could not be overlooked. For instance, each of BCH’s indicators slipped below their equilibrium points for the first time in nearly 2-months, while a negative crossover between the 20-SMA (red) and 200-SMA (green) created some more uncertainties.


Even though corrective phases have been overserved previously in the market, BCH’s RSI held above it mid-line. This was not the case anymore after the RSI shifted below 45 and into bearish territory. In fact, the RSI was yet to touch the oversold territory, which meant that BCH could see some more losses rather than an immediate reversal. Such was the case with the MACD and Awesome Oscillator as well, which slipped below their equilibrium levels. If sentiment continues to be weak, the 23.6% Fibonacci level and $400 would come back into play.


Bitcoin Cash’s long term narrative took quite a hit after prices declined below the 50% Fibonacci mark. In fact, this also negated a bullish setup which was highlighted in an earlier article. BCH’s indicators also fell into bearish zones  after this retracement. Considering these factors, BCH was open to a further sell-off towards the $400-mark in the coming weeks.

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Indian government cautious about crypto-adoption, CBDC is a possibility



Indian traders and exchanges might be bullish about the crypto market, but the Indian  government doesn’t seem keen on rushing into the scene. At least, not until studying its homegrown fintech industry and the anti-Bitcoin protests in El Salvador.

Tracking global news

Indian finance minister Nirmala Sitharaman in a recent interview with Hindustan Times explained why the country seemed to be falling behind when it came to crypto adoption.

Though she admitted, El Salvador wasn’t “the best example,” Sitharaman said,

“You’d think common people don’t care about digital currency; but the public took to the streets against the move. It’s not a question of literacy or understanding – it’s also a question of to what extent this is a transparent currency; is it going to be a currency available for everyone?”

Sitharaman referred to CBDCs as a “legitimate” cryptocurrency and admitted there could be a “possibility,” in hat regard. She noted that India held the “strength of the technology” and acknowledged the need to formulate a Cabinet note. However, Sitharaman wondered if India was ready to follow El Salvador’s way.

Facts on the ground

Though accessibility is a pressing concern, more Indians have discovered crypto than perhaps expected.

Nischal Shetty, CEO of the Indian crypto exchange WazirX – a subsidiary of Binance Holdings – has stated that WazirX sign-ups from India’s tier-two and tier-three cities overtook those from tier-one cities this year. Even so, sign-ups from tier-one cities themselves saw a 2,375% rise. Furthermore, WazirX added one million users in April 2021 alone.

Adding to this, the cost of electricity and Internet data in India are relatively cheaper, which could boost both crypto trading and mining in the future. However, at the last count, there was only one Bitcoin ATM in the whole country.

As per data by Useful Tulips, which combined data from Paxful and LocalBitcoins, India saw transfers worth around $4,502,369 in the last two weeks.

Could anti-Bitcoin protests happen in India?

There is evidence to support both sides. India has a strong history of mass protests, with the farmers’ protests against the government’s agricultural laws being one such example. The 2016 demonetization of part of the country’s paper currency still haunts many, and Internet penetration is yet to cross 50%.

However, India also has the largest diaspora in the world, with approximately 18 million people living outside the country. Crypto innovation could lead to hundreds of millions of dollars being saved on remittance charges as money is sent across borders.

But for the time being, it seems India’s urban residents are more bullish about crypto than its government.

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