The Maker (MKR) Token Buyback Program
The lending platform MakerDAO is set to remove approximately $7 million worth of MKR governance tokens from the market in the next month, according to blockchain data. This comes as MakerDAO activated a token buyback program earlier this month, which went live on Wednesday. The program, known as the Smart Burn Engine, uses excess DAI stablecoins from Maker’s surplus buffer to purchase MKR from a UniSwap pool.
Key Points:
- The MKR token surged to near a one-year high price of over $1,200 following the introduction of the token buyback program.
- The buyback program aims to remove MKR supply from the market and has already purchased around $230,000 worth of tokens in the last 24 hours.
- The program is on track to purchase approximately $7 million worth of MKR tokens in the next month.
- The buyback will reduce 0.7% of the MKR supply per month at current prices.
- MakerDAO is one of the largest and oldest DeFi lending protocols and is undergoing a major overhaul that includes upgrading the DAI and MKR tokens.
Hot Take:
The introduction of the token buyback program has had a significant impact on the price of MKR, with the token reaching its highest price in almost a year. This buyback program not only removes MKR supply from the market but also shows MakerDAO’s commitment to its governance token and the value it holds. It will be interesting to see how this program continues to affect the price and market dynamics of MKR in the coming weeks.
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