MakerDAO Community Votes to Keep GUSD in Reserve System, Thanks to ParaFi Capital

• MakerDAO’s community voted to keep the Gemini USD (GUSD) stablecoin as part of its reserve system for its DAI stablecoin.
• 50.85% of the votes favored keeping the GUSD debt ceiling at $500 million level in Maker’s Peg Stability Module (PSM), while 49.15% voted for decreasing to zero.
• Venture capital firm ParaFi Capital seems to have delegated just enough voting power in the last minutes to flip the end result.

The MakerDAO community recently concluded a vote on whether to keep the Gemini USD (GUSD) stablecoin as part of its reserve system for its DAI stablecoin. It was a dramatic vote that went right down to the wire and ended with the majority of votes in favor of keeping GUSD.

The poll saw 50.85% of the votes favoring keeping the GUSD debt ceiling at $500 million level in Maker’s Peg Stability Module (PSM), while 49.15% voted for decreasing to zero. This result averted near disaster for Gemini’s stablecoin, as MakerDAO holds 85% of all GUSD in circulation.

At the end of the voting, it seemed as though votes favoring removing GUSD from the PSM were leading the tally. However, venture capital firm ParaFi Capital seemed to have delegated just enough voting power in the last minutes to flip the end result. GFX Labs, the largest delegate in favor of keeping GUSD with 13.9% of all votes, received 10,000 MKR tokens representing 7.5% of all votes in two transactions from a wallet address associated with ParaFi Capital.

The result of the MakerDAO vote is an important milestone for Gemini’s stablecoin, and it will likely come as a relief to both Gemini and their customers. The vote also highlights the power of the MakerDAO community, and the importance of decentralized governance. As the DeFi industry continues to grow, it will be interesting to see how MakerDAO’s voting process evolves and how it will shape the future of the DeFi ecosystem.