MakerDAO likely to spend $100 million on development and testing of tokenized US Treasury bonds


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  • MakerDAO’s core member of strategic finance has proposed allocating $100 million in funding to US Treasury bond products.
  • The decentralized organization has invested $2 billion in short-term bonds after declaring its intent to invest in Treasury bills.
  • MKR's supply on exchanges is climbing steadily this week, while Maker price crumbles under selling pressure.

MakerDAO expressed its interest in acquiring US Treasury bills back in February 2022. Since then, the decentralized organization spent $2 billion purchasing short-term bonds.

A core strategic finance member of the DAO, Steakhouse, recently proposed spending $100 million on development and testing of US Treasury bond products, with mixed reactions from the community of members.

Also read: Vitalik Buterin could have fueled Shiba Inu price rally by burning $1.7 billion in SHIB

MakerDAO receives proposal to spend $100 million on tokenized US Treasury bonds

The MakerDAO community expressed mixed feelings about Steakhouse’s proposal to allocate $100 million to development and testing of tokenized US Treasury bond products. The rationale provided by the strategic finance core member is that tokenized T-bill offerings have expanded since MakerDAO first expressed interest in February 2022.

Exploring asset-liability management in such products is key to MakerDAO’s success, according to Steakhouse. The contributors of the strategic finance core unit state that the $100 million allocation is only a first step in tokenized T-bill products.

Community members expressed two key concerns:

  • $100 million is a large sum to invest in experimentation that is considered only preliminary or a “first step,” as described in the proposal
  • Massive regulatory risk by paving the way for sanctioned individuals to freely access a T-Bill-backed instrument without a whitelisting process

The MakerDAO community members in favor of the proposal asked for specific criteria or benchmarks to measure the success of the project and a dedicated timeline for implementation. 

MKR price faces selling pressure on centralized exchanges

MKR supply on exchanges dropped nearly 13% during the past weekend. However, based on data from crypto intelligence tracker Santiment, there has been a consistent increase in MKR supply on centralized exchanges this week.

MKR supply increased from 96,565 to 97,119 between September 4 and early on Friday. Typically, an increase in supply of the token fuels a bearish narrative for its price as larger volume of the asset is available for sale on centralized exchanges. 

MKR supply on exchanges vs price

MKR Supply on exchanges vs price

At the time of writing, MKR price is $1,140. he token is recovering from its August 31 intraday low of $1,031.

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