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MakerDAO’s Endgame Proposal fails to dazzle but…

2min Read

MakerDAO’s hopes for a turnaround fade as financial losses persist. Rising fees can’t halt the decline in Total Value Locked and MKR price.

MakerDAO's Endgame Proposal Fails to Halt Financial Slide as MKR Faces Downturn

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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.


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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