MakerDAO’s Endgame Proposal fails to dazzle as MKR slips below…

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  • MakerDAO’s Endgame pro­pos­al fails to reverse finan­cial loss­es as MKR expe­ri­ences a downtrend.
  • Despite ris­ing fees, MakerDAO’s Total Val­ue Locked, and MKR price suf­fer declines.

The accep­tance of the Mak­er­DAO [MKR] Endgame pro­pos­al marked a sig­nif­i­cant turn­ing point for Maker’s future. Nev­er­the­less, the lat­est data sug­gest­ed that Mak­er was cur­rent­ly expe­ri­enc­ing a decline in sev­er­al impor­tant met­rics, sig­nal­ing a poten­tial downtrend.

Read Maker’s [MKR] Price Pre­dic­tion 2023–24

MakerDAO grapples with losses

Accord­ing to a recent Mes­sari report, Mak­er­DAO has been grap­pling with finan­cial loss­es for the past 11 months. This stood in stark con­trast to the prof­itable peri­od it expe­ri­enced in 2021 and parts of 2022. 

Despite the intro­duc­tion of the Endgame pro­pos­al in 2022, which aimed to reshape the DAO’s struc­ture by estab­lish­ing self-gov­ern­ing and self-sus­tain­ing enti­ties called Sub­DAOs, the lat­ter part of 2022 and 2023 wit­nessed a con­tin­ued loss-mak­ing trend.

MakerDAO profit and loss

Source: Mes­sari

The Endgame pro­pos­al sought to revi­tal­ize the Mak­er­DAO ecosys­tem by diver­si­fy­ing its rev­enue streams. One of the strate­gies involved invest­ing a por­tion of Maker’s sub­stan­tial reserves, exceed­ing $7 bil­lion, into real-world assets and mon­ey-mar­ket funds. 

This move was intend­ed to bol­ster plat­form rev­enues. Addi­tion­al­ly, the pro­pos­al aimed to enhance the resilience of the DAI sta­ble­coin by fur­ther decen­tral­iz­ing its back­ing, mak­ing it more immune to cen­sor­ship and sanctions.

How­ev­er, despite these efforts, MakerDAO’s finan­cial per­for­mance has not seen the desired turn­around. Fur­ther­more, MKR has also been on a decline.

MakerDAO fees rise steadily

Based on data from Cryp­to Fees, the cur­rent dai­ly fee gen­er­at­ed by Mak­er­DAO stood at approx­i­mate­ly $64.8 mil­lion. Over the past sev­en days, the aver­age dai­ly fee had remained around $65 mil­lion, accord­ing to the avail­able data. 

Addi­tion­al­ly, a glance at the cumu­la­tive fees on DefiLla­ma indi­cat­ed a slight but con­sis­tent increase in fees over the past few months. As of this writ­ing, the cumu­la­tive fee had sur­passed $147 mil­lion, reflect­ing a mod­est improve­ment com­pared to pre­vi­ous days.

How much are 1,10,100 MKRs worth today

TVL and price suffer a decline

An analy­sis of the Total Val­ue Locked (TVL) on DefiLla­ma revealed a fluc­tu­at­ing pat­tern with both peaks and val­leys. Ini­tial­ly, the chart exhib­it­ed an upward trend ear­li­er in the year, but it had since reversed course. As of this writ­ing, the TVL stood at near­ly $7 bil­lion, reflect­ing a down­ward trajectory.

Fur­ther­more, over the past year, the val­ue of MKR expe­ri­enced a sig­nif­i­cant decline, falling by over 50%. Accord­ing to data from Coin­Mar­ket­Cap, the cur­rent trad­ing price of MKR was approx­i­mate­ly $625.

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