- MakerDAO’s community is voting to determine if it should hold GUSD in its reserve.
- Gemini’s recent troubles have prompted this governance vote for its stablecoin.
- Latest voting stats indicate that MakerDAO will retain almost $500 million GUSD in its reserve.
The community of MakerDAO is voting to decide if Gemini’s GUSD stablecoin should be held in their reserve. The vote is rather important for Gemini as the exchange navigates the ongoing crypto contagion. The outcome of this governance vote will play a major role in restoring public confidence in the crypto exchange.
MakerDAO currently holds almost $500 million worth of GUSD in its reserve. The DAO earns a marketing incentive of 1.5% for maintaining at least 100 million GUSD in the reserve. With the DeFi lender’s current exposure of 489 million GUSD, the annual revenue from Gemini comes out at roughly $7.3 million.
The proposal includes three outcomes for Gemini’s stablecoin. The first is to retain the whole reserve of almost 500 million GUSD. The second is to bring the exposure down to 100 million. The third and most drastic option is to completely eliminate GUSD from MakerDAO’s reserve.
The latest voting stats indicate that MakerDAO is set to maintain its half-billion exposure to Gemini’s stablecoin. As per the vote breakdown, 77.72% of the votes are in favor of no change to exposure. 22.28% of the votes are in favor of eliminating all exposure to GUSD. No votes have been cast in favor of limiting the exposure to 100 million. The vote ends today at 16:00 UTC.
The proposal to alter GUSD holdings comes following weeks of controversies surrounding Gemini. Non-payment from partners like Genesis paired with the challenges of the ongoing crypto winter has shaken confidence in the exchange. However, the DAO’s community has demonstrated confidence in the exchange and its stablecoin.
While the proposal acknowledged that there was no indication of any specific risk with GUSD, it stated that “community members have expressed concerns over recent news surrounding the exchange business and have expressed a desire to rotate Maker’s exposure out of GUSD altogether.”
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