• MakerDAO is in the middle of a governance vote to decide the fate of Gemini’s GUSD stablecoin in its reserves.
• Early voting numbers suggest that MakerDAO will retain its exposure to GUSD, with more than 77% of votes cast in favor of retaining GUSD in the DAO’s reserves.
• A third option of eliminating all GUSD reserves has also been proposed.
The DeFi lending platform MakerDAO is currently hosting a governance vote to make a crucial decision regarding its reserves. The vote will decide whether or not MakerDAO should continue to maintain exposure to the GUSD stablecoin issued by Gemini, a cryptocurrency exchange founded in 2014.
The proposal, brought by the Strategic Finance Core Unit, states that MakerDAO currently enjoys $7.3 million of annual revenues from its $500 million exposure to Gemini’s GUSD. This revenue comes from a marketing incentive of 1.5% that Gemini pays to the lending platform for maintaining more than $100 million of GUSD. The vote will decide if MakerDAO should maintain this exposure at $500 million or reduce it to $100 million, or if it should eliminate all GUSD reserves from its reserves.
The vote was prompted by the recent controversies surrounding Gemini and its financial health. In response to this, community members have expressed concerns and requested MakerDAO to rotate its exposure out of GUSD altogether.
Early voting numbers, however, suggest that MakerDAO will retain its exposure to GUSD after all. Majority of the votes have been cast in favor of retaining GUSD in the DAO’s reserves. No votes were cast in favor of reducing the exposure to $100 million, while only a small portion of the votes were in favor of eliminating the stablecoin from the protocol’s reserves.
The results of this vote will have a major impact on MakerDAO and the cryptocurrency industry, as it will determine if MakerDAO will continue to maintain exposure to the GUSD stablecoin in its reserves. The outcome of the vote will be closely monitored by all stakeholders involved, as it will have an immense influence on the future of the DeFi industry.