MakerDAO community proposed a new governance-token model

The MonetSupply team has presented to the MakerDAO community a proposal to change the governance and staking model using stkMKR tokens.

⚒️ @MonetSupply presented an idea of an alternative token economic mechanism that could supplement the current MKR buyback value accrual system.

stkMKR? Read the entire thread:https://t.co/1hEORZTblu

— Maker (@MakerDAO) March 14, 2022

According to the authors, the stkMKR tokenomics mechanism resembles the approach implemented in Cosmos, as well as solutions involving stkAAVE and xSUSHI assets.

It is envisaged that stkMKR will replace MKR and will represent a non-transferable stake in the project’s governance.

Under the proposal, changes to the tokenomics are aimed at:

• Encourage participation in governance;
• Increase MKR staking returns;
• Reduce the risk of governance attacks;
• Increase resilience to credit losses for MKR holders.

stkMKR can be obtained through staking MKR as well as from a portion of coins burned after surplus auctions.

In 2020, MakerDAO handed governance over to the community.