Rune Christensen Proposes Governance Token for Spark Lending Protocol
Rune Christensen, the founder of MakerDAO, has put forth a proposal to introduce a new governance token for the Spark lending protocol. This token, called Spark (SPK), will be distributed as rewards to users in a “pre-farming airdrop” to encourage long-term engagement with the platform. Here are the key points of the proposal:
– The proposal outlines the distribution of two billion Spark tokens over a ten-year period.
– Spark Protocol is a lending protocol by MakerDAO that offers DeFi loans using liquidity sourced directly from Maker.
– Spark is set to become a subDAO within MakerDAO, marking a significant step in MakerDAO’s endgame plan.
– SubDAO tokens will be allocated to Spark borrowers based on the amount and duration of borrowing, incentivizing usage and community participation.
– Despite offering a 5% yield on Dai deposits (previously 8%), Spark aims to encourage active usage through the distribution of Spark tokens.
In conclusion, Rune Christensen’s proposal aims to incentivize long-term engagement and usage of the Spark lending protocol by introducing a new governance token. By allocating tokens to borrowers and promoting community participation, Spark hopes to foster a strong user base aligned with its mission and potential.
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