What you need to know about the newest protocol proposal, according to MakerDAO [MKR]

Members overwhelmingly supported a 1% increase as of the time of publication.

Leading decentralized lending protocol MakerDAO [MKR] published a proposal on November 28 asking its community for input on whether to raise its DAI Savings Rate to 1%, 0.75%, 0.5%, or 0.25% or keep it at its current rate of 0.01%.

The MakerDAO Open Market Committee stated in a previously published Parameters Changes Proposal that the goal of seeking an increase in the DAI Savings Rate was to redistribute Maker Protocol’s TradFi revenue—accrued through various DAO balance sheet investments—to all DAI holders.

As of the time of writing, 99.74% of votes were in favor of raising the DAI Savings Rate by 1%.

If you own MKR,

The price of the alternative decreased by 29% in the previous month, from $925 to $653.

On-chain analytics showed that daily MKR volume peaked at $93.22 million on November 10 and has since decreased by 73% over the past month. A total of $24.71 million worth of MKR tokens have been traded in the previous day as of this writing.

As its price dropped, MKR’s network activity also decreased. According to the on-chain analytics tool Santiment, the number of unique addresses that traded MKR daily has decreased by 83% since November 10. Only 125 addresses had exchanged the alternate as of publication.

Similarly, after reaching a peak of 365 addresses on November 13th, the number of new addresses on the MKR network started to decline.

According to Santiment data, the weighted sentiment for the alternative has been negative since October 2.

Therefore, if conviction stays low and network activity keeps declining, another price decline could be on the horizon.