Spark Lending Protocol Airdrop: MakerDAO Founder Rune Christensen Introduces Bold Governance Token Proposal

2023-08-10 18:03:00

MakerDAO, one of the cornerstones of the decentralized finance (DeFi) world, has just announced a proposal for an airdrop of tokens for the Spark Lending Protocol. In a recent announcement by its founder, Rune Christensen, it was revealed that this airdrop is for Spark Protocol’s governance token. The proposal details the impressive distribution of two billion Spark tokens (SPK) over a ten-year period.

Rune Christensen proposes a new dynamic for the Spark loan protocol

Rune Christensen, the founder of MakerDAOa renowned stablecoin issuer, has presented a bold proposal: the creation of a new governance token for the Spark loan protocolwhich would be distributed as rewards to users.

This initiative, referred to as a “pre-culture airdrop”, aims to stimulate a long-term engagement with the platform. In detail, the proposal envisages the distribution of two billion Spark tokens (SPK) over a decadeembodying a strategy to encourage continued use of the Spark protocol.

The Spark protocol is an innovation introduced by MakerDAO. He presents himself as a lending solution in the DeFi universe, drawing its liquidity directly from MakerDAO. The protocol accepts assets such as Ether, Staked Ether, and Dai as collateral.

Allocation of sub-DAO tokens and incentivizing active use of Spark

The future looks bright for Spark, as it is expected to eventually evolve into a sub-DAO, which would mark a significant step forward in MakerDAO’s long-term strategy. A sub-DAO would actually be an independent decentralized autonomous organization au sein de MakerDAO.

As part of this vision for the future, several sub-DAOslike Spark, are planned to see the light of day, each being governed by its own tokens.

The tokens of sub-DAOs will be allocated to Spark borrowers, using various assets as collateral. These tokens will be distributed according to the amounts borrowed and the duration of the loan.

“Our goal is to build a community of DAO users and participants who share the vision and potential of SparkDAO,” said Christensen.

The ambition lies in encouraging active use of Spark, despite the fact that it offers a return of 5% — which was previously 8% — on Dai deposits. This offer is known under the name of Increased Savings Rate on Daior EDSRin the words of Christensen.

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Earlier this week, the EDSR (savings rate) on Spark had climbed to 8%, resulting in large capital inflows, as users seized arbitrage opportunities by borrowing. They were borrowing Dai at lower rates and then deploying it at higher yields via EDSR. Faced with this situation, Christensen announced that the rate would be readjusted to 5%due to the rapid crossing of the planned threshold for Dai deposits.

Sources : Makerdao, The Block

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