MakerDAO founder proposes adjusting EDSR to ensure the interests of regular DAI holders.

Odaily News: MakerDAO founder Rune has proposed in the governance forum, stating that within 48 hours since the release of EDSR, the supply of DAI has increased by nearly 500 million, and the DSR utilization rate is close to the 20% threshold, which will automatically reduce EDSR to around 5.8%. This means that the market can self-balance and digest excess returns.



The proposal points out that the current EDSR structure is biased towards ETH and ETH collateral holders. To ensure the interests of regular DAI holders, the proposal suggests reducing the maximum value of EDSR from 8% to 5% and increasing the borrowing interest rate to match EDSR, thus avoiding large-scale borrowing arbitrage.



In addition, Rune said, "I believe a more interesting solution is to establish a retrospective sub-DAO token airdrop mechanism for early users of the Spark Protocol, in order to fairly reward their participation in the early stages of Spark Protocol and their support for the Spark DAO community, thus establishing the Lindy effect of Spark Protocol." Therefore, all users who actively borrow after the increase of EDSR with Spark Protocol's borrowing interest rate will receive rewards to acknowledge their early involvement and contributions to building Spark Protocol.