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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 […]

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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 XBT.net 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

Source: https://xbt.net/blog/makerdao-token-holders-vote-could-increase-fee-for-ethereum-based-stablecoin/

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Bitcoin Mining Company Vows to be Carbon Neutral Following Tesla’s Recent Statement

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It goes without saying that Tesla took center stage last week when the company announced it would no longer support bitcoin payments for its electric vehicles.

The message seems to have resonated, as Greenidge Generation Bitcoin Mining has vowed to be carbon neutral in 2021 and beyond.

Carbon Neutral Bitcoin Mining

After announcing plans to expand its Bitcoin mining operations last month, Greenidge is now looking to go entirely carbon neutral this year and in the future.

The company is committed to the cause, and it plans to invest in US-based renewable energy projects.

According to a recent press release, the company will also take part in the Regional Greenhouse Gas Initiative, which is a market-based program where participants sell CO2 allowances through auctions and invest the proceeds in renewable energy and energy efficiency.


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Speaking on the matter was Jeffrey Kirt, the CEO of the company, who said:

“Our bitcoin mining capability is already best-in-class and seamlessly integrated with our electricity generation that powers thousands of homes and businesses. By taking the bold and unique step of making or cryptocurrency mining fully carbon neutral immediately – as opposed to some distant date in the future – Greenidge is once again leading in environmental efforts.”

Musk’s Message Resonates

Greenidge’s announcement comes days after the leading electric vehicle manufacturer, Tesla, revealed that it would no longer support bitcoin payments. As a reason for its decision, the company cited environmental concerns related to bitcoin mining.

Elon Musk, the company’s CEO, confirmed and reiterated that he is bullish on crypto but so long as it doesn’t have a negative environmental impact.

The company also said that it’s looking for ‘greener’ alternatives to Bitcoin so that it can continue accepting crypto payments. This led to many speculations about which cryptocurrency it would choose. Shortly after, Musk said that he’s working closely with Dogecoin developers to improve transaction efficiency, causing many to believe that the meme-inspired coin might be Tesla’s choice.

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Source: https://cryptopotato.com/bitcoin-mining-company-vows-to-be-carbon-neutral-following-teslas-recent-statement/

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There is something different this time around for MATIC and ETH

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MATIC’s growth has been community and developer-driven. Trading at the $1.13 level and registering 27% gain in price in the past 24 hours, MATIC’s rally is an extended one, leading the altcoin season 2.0. However, there is something different this time around, MATIC is currently rallying alongside ETH, more as an ally, than a competitor. With ETH’s price above the $3700 level, and MATIC’s rally, the alt season has offered several opportunities, consolidating alts and rallies following closely after.

Here's why traders are bullish on MATIC and ETH

MATIC network || Source: Twitter

Since the release of the latest transparency report on Polygon Multisigs, Polygon has become more relevant and there is increased demand for the altcoin across exchanges. Multisigs are used by top projects that have the feature of updating smart contracts. This is not the case for Ethereum, since smart contracts on Ethereum are immutable by design ie. they can not be changed once deployed.

However, this feature also means that if there is an inherent error or potential exploit in the code, there is no way to fix it. Upgradeable contracts are needed and that’s where Polygon’s narrative fits in, making it a much-needed scaling solution and an upgrade on ETH.

The current network statistics for MATIC are looking bullish since there are over 65.8 Million total transactions in over half a million wallet addresses and at $10.4 Billion market capitalization. The trade volume has increased consistently since the beginning of 2021 and more buyers are lining up across spot and derivative exchanges.

The demand for MATIC and the number of transactions have increased and are expected to increase to the level of Ethereum before the end of the alt season. The increase in wallet addresses and unique users is a direct measure of MATIC’s demand as an L2 scaling solution for the #1 altcoin in the crypto market.

The competition with ETH is no longer as intense, considering the fact that ETH’s increasing popularity contributes to the network growth and inflow of investment to MATIC. MATIC’s transaction volume largely depends on ETH’s network and the fact that ETH needs a scaling solution despite the launch of L2, has led to a symbiotic relationship between the two altcoins.


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Source: https://ambcrypto.com/there-is-something-different-this-time-around-for-matic-and-eth

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Ripple Partners with Sustainability Leaders to Reach Goals by 2030

Ripple has added its voice to the ongoing cryptocurrency sustainability pool with the announcement that it aims to hit carbon net zero by 2030. And it has partnered with various sustainability leaders to achieve that aim.

The post Ripple Partners with Sustainability Leaders to Reach Goals by 2030 appeared first on BeInCrypto.

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Ripple has added its voice to the ongoing cryptocurrency sustainability pool with the announcement that it aims to hit carbon net zero by 2030. And it has partnered with various sustainability leaders to achieve that aim.

In a tweet shared on May 15, Ripple (XRP) linked to a post on its website. The page detailed a number of aspects of their environmental strategy. This included a list of their partners, which already counts the Bill & Melinda Gates Foundation, Mercy Corps, Mojaloop Foundation, and the Institute for Business and Social Impact among them.

Overall, Ripple has non-government organization (NGO) partners in more than 80 countries.

Now, sustainability leaders like the Renewable Energy Buyers Alliance (REBA), the Energy Web Foundation, and Watershed have joined their ranks. The page also states:

“Our current global financial system does not meet the needs of 1.7 billion unbanked people. “Digital assets and distributed ledger technology (DLT) have the potential to transform how unbanked and underbanked populations access basic financial services and send and receive money across borders, making it more accessible, affordable and secure.”

The report on the website also referred to how green XRP is, compared to leading cryptocurrencies bitcoin (BTC) and ethereum (ETH). More specifically, XRP uses only 63,000 gallons per 100 million transactions. Meanwhile, BTC uses nearly 4 billion gallons per 100 million transactions. And ETH uses another 239 million gallons.

Sustainability and crypto

Cryptocurrency’s environmental implications have been the subject of much debate in recent weeks. Not least in light of Elon Musk raising the issue of fossil fuel emissions incurred by bitcoin mining.

The businessman took such a strong stance on this issue that he suspended BTC as a currency option for purchases at Tesla. This decision prompted a swift decline in BTC’s price, falling below the $50,000 threshold.

Even so, Musk’s decision was not met without criticism. Tim Draper, for one, made the point that the present banking system caused its share of environmental issues. The global investor suggested that, by Musk’s philosophy, he should stop accepting purchases in fiat currency as well.

Meanwhile, other nations are putting other measures in place to protect the environment against BTC mining. On May 15, reports stated that the Iranian authorities would enforce fines to anyone caught mining off household electricity.

Other updates on XRP

It’s an eventful time for Ripple at the moment. As a pending lawsuit against the U.S. Securities and Exchange Commission (SEC) continues. The next major event in the case is due to take place on May 17, primarily surrounding John E. Deaton’s Motion to Intervene. Deaton is scheduled to reply to Ripple and the SEC’s respective positions on his motion. The SEC will also respond to Ripple’s position on that Motion to Intervene.

But it’s not all bad, as on May 16, data indicated that XRP was up over 12% in a 24-hour period. XRP are currently ranked the fifth most valuable cryptocurrency by market capitalization.

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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Dale Hurst is a journalist, presenter, and novelist. Before joining the Be In Crypto team, he was an editor and senior journalist at a news, lifestyle and human-interest magazine in the UK.

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Source: https://beincrypto.com/ripple-partners-with-sustainability-leaders-to-reach-goals-by-2030/

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