MakerDAO Votes to Keep Delegates Anonymous, HHI & TVL in Focus

24. Mai 2023 Aus Von admin

• MakerDAO has initiated a vote on a proposal to make anonymity mandatory for eligible voters.
• The Herfindahl-Hirschman Index (HHI) has increased, indicating lower competition within the network.
• MakerDAO’s Total Value Locked (TVL) stands at $6.87 billion and MKR’s price has decreased by 12.19% in the past month-to-date cycle.

MakerDAO Anonymity Proposal

MakerDAO, a pioneering DeFi protocol, has initiated a vote on a proposal that would allow its delegates to maintain anonymity and keep their whereabouts undisclosed. Co-founder Rune Christensen is leading the proposal, which, if approved, would make anonymity a mandatory requirement for eligible voters. The proposal includes consequences for delegates who reveal their identities publicly, with the forfeiture of their rewards as a penalty. Community members who provide evidence of such wrongdoing would also be eligible for rewards. Christensen believes that this measure would reduce the vulnerability of delegates to criminal targeting and prevent them from using personal relationships to influence outcomes.

Herfindahl-Hirschman Index (HHI)

On-chain data indicates that MakerDAO’s Herfindahl-Hirschman Index (HHI), a metric measuring supply concentration, has increased. With a current value of 0.022, the higher index suggests that funds are more concentrated in certain addresses, indicating lower competition within the network. However, the HHI has limitations in defining the specific market being examined. For instance, it may fail to account for situations where one company dominates a particular segment or holds a monopoly over a specific product or service despite overall market appearing competitive based on HHI calculation. Geographic factors can also impact market concentration as companies with equal market shares operating in different geographic regions may effectively have monopoly within respective markets leading to an increase in HHI value even if overall market appear competitive .

Total Value Locked (TVL)

Despite recent fluctuations, MakerDAO’s Total Value Locked (TVL) remains in second place behind Lido Finance (LDO). The TVL represents total amount of assets locked in protocol and presently stands at $6.87 billion showing 7.30% decrease in past 30 days reflecting decline in liquidity and overall protocol health .

MKR Price

Turning to price of MKR , data from CoinMarketCap reveals 12 .19 % decrease in value over past month -to – date cycle .

Historical Significance

The historical relevance of MakerDAO as pioneering DeFi protocol lies role as model terms of market concentration and how this affects ecosystem general . Where market dynamics and competition are play , protocols like MakerDAO offer example how decentralization can lead greater resilience financial systems while ensuring fair access all participants regardless location or socio – economic background .