<\/p>\n
- \n
- MakerDAO\u2019s Smart Burn Engine (SBE) aims to reduce MKR supply, holding potential for MKR\u2019s future.<\/em><\/li>\n
- Revenue surges, but development activity slows.\u00a0<\/em><\/li>\n<\/ul>\n
MakerDAO[MKR],<\/a> despite losing its top ranking in terms of TVL in 2023, has continued to make progress and developments across various aspects of its protocol.<\/p>\n
\nIs your portfolio green? Check out the MKR Profit Calculator<\/a><\/p>\n
\nSmart Burn Engine Ignites MakerDAO<\/h4>\n
MakerDAO introduced the Smart Burn Engine (SBE) on 5 July, 2023, designed to \u201cburn\u201d MKR by utilizing protocol surplus.<\/p>\n
When the surplus exceeds $50 million, the mechanics kick in. Surplus DAI is used to swap for MKR on Uniswap\u2019s DAI-MKR pool, adding more liquidity.<\/p>\n
So far, about $16.2 million in DAI has been spent to acquire MKR, enhancing liquidity.<\/p>\n
Based on this growth, an estimated $72.7 million worth of MKR is expected to be purchased by the SBE in the next year. This approach aims to maintain buy pressure on MKR as long as the protocol\u2019s surplus remains above $50 million.<\/p>\n
\n
.@MakerDAO<\/a> introduced its Smart Burn Engine (SBE) on July 5, 2023, designed to \u2018burn\u2019 MKR by leveraging protocol surplus. \ud83d\udd25<\/p>\n
The mechanics activate when the protocol surplus exceeds $50M. <\/p>\n
Here\u2019s how it works:<\/p>\n
1. Surplus DAI is used to swap for MKR on the Uniswap v2 DAI-MKR\u2026 pic.twitter.com\/EwvD6iNM4m<\/a><\/p>\n
\u2014 Delphi Digital (@Delphi_Digital) October 27, 2023<\/a><\/p>\n<\/blockquote>\n
The introduction of the Smart Burn Engine holds the potential to significantly impact MakerDAO and its native token MKR.<\/p>\n
This innovative mechanism, designed to reduce the MKR supply, benefits token holders and strengthens the project\u2019s fundamentals.<\/p>\n
Revenue Surges for MakerDAO<\/strong><\/h4>\n
In line with its expansion efforts, MakerDAO witnessed a substantial surge in revenue. According to data from Token Terminal, the protocol\u2019s revenue surged by an impressive 94.4%.<\/p>\n
This indicated that MakerDAO\u2019s revenue-generating mechanisms and DeFi activities were effectively contributing to the project\u2019s overall financial health.<\/p>\n
While MakerDAO\u2019s revenue was flourishing, development activity within the protocol showed a slowdown. The number of code commits on the MakerDAO GitHub decreased by 19.3% over the last month.<\/p>\n
This decline in development activity might be attributed to a focus on refining existing features rather than introducing new ones. It could also signify that MakerDAO is entering a consolidation phase after previous periods of rapid development.<\/p>\n
\nRealistic or not, here\u2019s MKR\u2019s market cap in BTC terms<\/a><\/p>\n
\n - Revenue surges, but development activity slows.\u00a0<\/em><\/li>\n<\/ul>\n
![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/10\/Screenshot-2023-10-28-at-12.46.46-PM.png\")
<\/a><\/p>\n![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/10\/Maker-MKR-12.47.25-28-Oct-2023.png\")