MakerDAO’s MKR soars by 28% in a week ── Start of token buyback scheme | CoinDesk JAPAN | CoinDesk Japan

Maker (MKR), the governance token of MakerDAO, a decentralized finance (DeFi) lending platform with a scale of 5.3 billion dollars (approximately 742 billion yen, equivalent to 140 yen to the dollar), soared to nearly a one-year high on the 21st following the introduction of a token buyback program.

Early in the morning of the 21st, MKR exceeded $1,200 (about 168,000 yen) for the first time since August last year, but since then it has slowed down and is hovering around $1,148. MKR is up 28% over the past week, well above the 4.6% drop in the CoinDesk Market Index (CMI), which measures the performance of the cryptocurrency market as a whole.

Token buyback scheme launched

MakerDAO activated a token buyback scheme called Smart Burn Engine on the 19th, and the market has run out of MKR supply. Under the scheme, excess stablecoin Dai (DAI) from Maker’s surplus buffer will be allocated periodically to buy MKR from a pool of UniSwap, according to the governance proposal.

The program was introduced earlier this month and kicked in when the excess buffer exceeded $50 million.

About $230,000 worth of MKR was bought back over the past 24 hours by the scheme, according to Etherscan blockchain data. At this pace, about $7 million (about 980 million yen) of tokens are expected to be bought back next month.

｜Translation: CoinDeskJAPAN
｜Editing: Rinan Hayashi
｜Image: CoinDesk
｜Original: MakerDAO’s MKR Soars 28% in a Week as Token Buyback Scheme Goes Live