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MakerDAO Fee Decrease Stalls Amid Decline in Token Holder Voting Turnout

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After an initial round of polling last Thursday, MakerDAO token holders have failed to finalize a decision to decrease fees for users on DAI stablecoin loans taken out through MakerDAO’s programmatic lending protocol.

On Friday, a secondary round of polling — called an “executive vote” — was launched in order to execute a 2 percent decrease to MakerDAO fees in the system. However, for the first time, the minimum threshold of 117,631.90 MKR tokens was not reached over the weekend and the executive vote remains unfulfilled with a total of 46,546.86 MKR tokens staked.

Taking a step back, MakerDAO is the most popular decentralized finance application in the cryptocurrency industry, according to decentralized application tracker DeFi Pulse. MakerDAO has issued over 81 million DAI tokens backed by the world’s second largest cryptocurrency in the world, ether.

For the first time in 5 months, MakerDAO token holders agreed to reduce accumulating interest – called the Stability Fee – on all MakerDAO DAI loans from 19.5 percent to 17.5 percent. However, the vote threshold itself was actually reached by a total of two large token holders who collectively staked 54,000 MKR tokens and outweighed other polling options which had a higher number of individual voters but a lower number of tokens staked overall.

“There are two important signals the community should be monitoring,” highlighted head of community developer at the MakerDAO Foundation Richard Brown in a Reddit post.”MKR staked, which determines the governance polls, and the overall voter turnout. We need to know as a group if two large holders pushed through a vote, while a majority of smaller holders voted differently. Being able to have this information is important for the community, in order to identify disconnects.”

Brown added in the same post that there is absolutely no MakerDAO token holder large enough to overpower 5 or 6 MakerDAO token holders staking in favor of a competing proposal. However, as noted by a Reddit user in response, token holders no longer feel safe staking their MKR after a critical vulnerability was disclosed roughly two weeks ago that could have frozen user funds.

“Rich, one of the reason people were panicking is [the] last voting contract had [a] ‘bug’ and they are not prepared [to] risk large chunk of money until they are 100 percent confident…that new contract is safe,” wrote “forextraderaus.” “[The] new contract has half MKR then the last one, that’s why turnout was smaller [than] before.”

Due to the lack of MKR tokens staked in favor of a 2 percent decrease to the Stability Fee, Brown issued an additional Reddit post Sunday questioning whether the token holders should be given more time to stake their tokens or the executive vote should be abandoned all together.

“Because there can be an assumption that the most recent option presented is ‘better’ than the last, it’s possible to consider the existing system in a state of flux while everyone waits for the votes to come in. What happens though, if the new state isn’t approved?” asked Brown in his post.

He wrote:

“Does the Polling system have a hard dependency on a recent state change in the system?…How do we know whether the lack of support for a new vote represents support for the old state, or simply a delay in voter activity? When can we expect a state to be considered chosen?”

For now, the executive vote to decrease the Stability Fee is ongoing. In addition, a new governance poll has been entered in to the system posing to MakerDAO token holders an new series of proposals ranging from a Stability Fee of 13.5 percent to 23.5 percent.

“We don’t know if the new executive vote will never be ratified or it will be voted in during the poll. So we’ve reconfigured the polls to stop talking about relative changes, [that is,] -2 percent or + 3 percent,  and instead ask about the absolute values for the fee,” said Brown to CoinDesk.

Ballot image via Shutterstock

 

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A New Bitcoin Exchange Point On the Colombian-Venezuelan Border Will Help Refugees

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A new cryptocurrency exchange service is available on the border between Colombia and Venezuela and its aim is to help refugees traveling across the Simon Bolivar International Bridge.

Visitors are now able to use the point-of-sale service with cryptocurrencies to buy goods. The POS is located in Santander, Colombia, just across the border from Venezuela. Panda Group created the payment alternative with refugees in mind. The group, a Columbian-Venezuela joint venture, announced the implementation of the new service through their Twitter account.

According to the data published by Coinatmradar.com, the service lets users exchange using bitcoin (BTC), bitcoin cash (BCH) and dai (DAI), and converts them into to Colombian Pesos (COP).

At the physical location – a small phone service provider in a mall called La Parada – customers can buy bitcoin with prices based on the Localbitcoins rate in pesos. The service will charge 10 percent above the market price and those who sell their bitcoins will do so for 5 percent more than the established market value.

This is not the first cryptocurrency service in the country. The Panda Group has already installed another five cryptocurrency exchanges in Colombia, most of them in the Colombian capital, Bogotá.

According to Panda CEO, Arley Lozano Jaramillo, their solutions are focused on helping the Venezuelan users and they announced the addition of a new service called Xpay.Cash to encourage adoption.

“This service is for all our brothers to pay directly in Cucuta with their cryptoassets and mitigate the loss of exchanging from BTC to COP, which represents a loss of at least 20%,” Jaramillo said.

Colombia has the highest rate of cryptocurrency investors in South America, next to Brazil. There are reportedly over 20 businesses accepting bitcoin payments in the country. The establishments are mainly focused in tourism, food and digital services.

Bitcoin At The Border

The ATM installed in Villa del Rosario City is connected to the Venezuelan border by the state of Tachira. The states are only separated by the Simon Bolivar International Bridge, one of the most heavily traveled borders used by Venezuelan refugees.

The refugee situation has also sparked a focus on the cryptocurrency, mainly for humanitarian aid purposes.

On the other hand, the last point of sale with cryptocurrency was implemented in Cúcuta, another border location with an growing Venezuelan population. The state also has a Bitcoin ATM, one of forty-two in the country.

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Fidelity-Backed Crypto Analytics Firm to Integrate Twitter-Based Crypto Sentiment Feed

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Crypto analytics firm Coin Metrics partnered with Social Market Analytics (SMA) to collaborate on a feed of real-time sentiment towards cryptocurrency based on social media data, according to a press release on June 17.

The new partnership intends to collect and analyze data posted by crypto community on social media in order to provide a new tool to help crypto traders to track social media sentiment data to build their portfolio strategies.

The new product will initially target sentiment data solely on social media giant Twitter, Coin Metrics CEO Tim Rice confirmed to Cointelegraph, adding that the firms are currently not considering integration of the service into Facebook.

Specifically,Coin Metrics will incorporate the product into market data platform, called the SMA cryptocurrency Sentiment Feed, providing calculated metrics of data on Twitter, according to a report by crypto media outlet The Block. In the report, Rice said that the calculation algorithms would include relevant tweets and calculate “19 different aggregate sentiment metrics down to snapshots of one minute.”

Social Market Analytics is providing social media-powered predictive data analytics to traditional capital markets participants in various markets, including stocks, forex, Exchange-Traded Funds (ETFs), futures, among others. Since its establishment in 2012, SMA has been a Twitter Finance partner, the firm’s CEO Joe Gits stated in an email to Cointelegraph.

Meanwhile, Coin Metrics is backed by major American investment management company Fidelity in February 2019, which participated in a $1.9 million funding round in February 2019.

Earlier today, social media giant Facebook released the white paper for its long-anticipated cryptocurrency and blockchain-powered financial project known as Libra stablecoin.





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Bitcoin Falls Near $9,000 as US Stock Market Sees Gains

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Monday, June 17 — most of the top 20 cryptocurrencies are reporting moderate losses on the day by press time, as bitcoin (BTC) falls Near $9,000 mark again.

Market visualization courtesy of Coin360

Market visualization courtesy of Coin360

Bitcoin is currently down about 3% on the day, trading around $9,045 at press time, according to Coin360. Looking at its weekly chart, the coin is up around 11%.

Bitcoin 7-day price chart

Bitcoin 7-day price chart. Source: Coin360

As Cointelegraph reported earlier today, bitcoin surpassed one million daily active addresses on June 14, according to blockchain statistics website CoinMetrics.

Ether (ETH) is holding onto its position as the largest altcoin by market cap, which currently stands at $28.2 billion. The second-largest altcoin, Ripple’s XRP, has a market cap of $18.1 billion at press time.

Coin360 data shows that ETH has seen its value decrease by about 2.27% over the last 24 hours. At press time, ETH is trading around $265. On the week, the coin has also gained almost 6.8% of value.

Ether 7-day price chart

Ether 7-day price chart. Source: Coin360

XRP is down by just over 0.43% over the last 24 hours and is currently trading at around $0.430. On the week, the coin is up about 6.7%.

XRP 7-day price chart

XRP 7-day price chart. Source: Coin360

Yesterday news broke that major money transmission network MoneyGram has entered into a strategic partnership with blockchain-based payments firm Ripple.

Among the top 20 cryptocurrencies, the only ones reporting gains are binance coin (BNB), which is over 1% up, and DASH, which is up over 2%.

At press time, the total market capitalization of all cryptocurrencies is $282.8 billion, over 11.6% higher than the value it reported a week ago.

As Cointelegraph reported earlier today, Social media giant Facebook has released the white paper for its long-awaited cryptocurrency and blockchain-based financial infrastructure project.

In traditional markets, the United States stock market is seeing gains so far today, with the S&P 500 up 1.17% and the Nasdaq up 1.73% at press time. The CBOE Volatility Index (VIX), on the other hand, has lost 0.46% on the day at press time.

Major oil futures and indexes are mixed movements today, with WTI Crude up 3.99%, Brent Crude up 2.43% and Mars US down 0.83% at press time. The OPEC Basket is up 0.57% and the Canadian Crude Index has seen its value increase by 5.57% in the 24 hours by press time, according to OilPrice.





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