The Rise of Dai: Milestone Achieved
The Dai stablecoin has officially hit its 100 million token debt ceiling. That’s right, 100 million Dai tokens are out there dancing in the wild, and it’s time we take a closer look at what that means. Remember a time when Dai had a paltry 50 million limit? Those days are long gone. Back in July 2018, a community vote rocketed that limit thanks to a one-time use smart contract. Now we’re just sitting here, wondering what might come next.
Token Distribution: A Few Hold All the Power
Ever wonder who’s holding all those shiny tokens? Data from Etherscan reveals that the top 100 holders of Dai command over 72% of all tokens. It’s like that high school where only a handful of kids gets invited to the party while everyone else is left staring in from the outside. So, while Dai is abundant, the power remains concentrated among a few elite hodlers.
Understanding Dai: What Makes it Tick?
Dai isn’t your garden-variety stablecoin; it doesn’t rely on bank reserves filled with cash. Instead, it operates through a fascinating system where users stake their cryptocurrency—primarily Ether (ETH)—as collateral. When you borrow or generate Dai, you’re basically turning your ETH into spending power. And when it’s time to repay, you’ll eat a slight fee—currently at 5.5% per annum—before reclaiming your beloved Ether. It’s the financial equivalent of borrowing your buddy’s video game and promising you’ll return it, but first, you’ve gotta pay a rental fee.
Coming Soon: Multi-Collateral Dai
Big changes are afoot! On October 9, Rune Christensen, CEO of the Maker Foundation, teased the upcoming Multi-Collateral Dai (MCD), slated for launch later this month. With this shiny new coin comes a rebranding: our good old single-collateral Dai will don a new name, “Sai,” while MCD takes over as the new Dai. So, what’s the big deal with MCD? Well, it allows users to stake various assets instead of just ETH—think of it as a diversified toolbox for your financial needs.
Bugs and Security: A Critical Discovery
Just when you think everything’s going smoothly, a little drama unfurls. On October 1, a user from HackerOne unearthed a critical bug in the MCD upgrade that could have opened the floodgates for hackers to swipe all collateral within the MCD system in one fell swoop. Thankfully, a white-hat hacker spotted it, and as a token of appreciation—pun intended—the hacker received $50,000 for their keen eye. Talk about turning a zero into a hero!
