• A proposal was submitted to MakerDAO’s official forum by the community leader.
• This proposal highlights inefficiencies and issues with current tokenomics models.
• It will be submitted to the Maker Improvement Proposal Committee (MIP) for approval and voted by MKR token holders.

MakerDAO members received a proposal to change the MKR governance coin. This proposal proposes the introduction of a new token stkMKR that will serve as a bonding asset to MKR staked on governance proposals.

The proposal was made on the MakerDAO forum by the community’s leader on Monday, March 14, which outlines an alternative token economic mechanism. The proposal also highlights some issues and inefficiencies with the current tokenomics model, which operates as a “buyback and burn” mechanism.

According to the proponent, there were several problems with the existing system. These include a lack in targeted incentives as buyback and fire returns all capital to MKR holders. Proposed rewards will provide greater incentives for people who invest in cryptocurrency.

Within hours of posting the new proposal, many members of this forum commented. Most of these comments related to technicalities and were generally positive.

Next, the proposed proposal will be presented as a Maker Improvement Proposal. This formal vote is conducted by MKR token holders and takes around 2 weeks. If the proposal passes a full governance vote it could be replaced by its existing governance token MKR with a new token called STKMKR.

Although the proposal was well received, the tokenomics community behind decentralized stablecoin platforms is still contemplating the possible major shift in tokenomics that could lead to the replacement of the MKR currency governance token.

Continue reading on CoinQuora