MakerDAO, a decentralized money market on Ethereum for users to borrow and lend assets, including ETH, spends $27.66 million annually to keep the protocol running, DeFiLlama data on May 31 shows.
This sum of money is utilized to cover expenses such as taking care of the 97 individuals responsible for maintaining the lending and borrowing protocol and ensuring that the code operates smoothly without any issues.
MakerDAO Has Big Expenses
As of May 31, MakerDAO had spent slightly over $10.6 million in DAI to meet mounting expenses in 2023 alone. DAI is the algorithmic stablecoin minted and managed by MakerDAO, tracking the value of the USD.
It differs from other popular fiat-pegged stablecoins like the USDT or BUSD, minted by a centralized entity demanding each token in circulation to be backed by an equal amount of fiat currency, primarily the USD.
Thus far, $10.6 million in DAI has been spent. Of this amount, 2,048,873 DAI was allocated for Protocol Engineering, and 15% of the total expenses were used for Sustainable Ecosystem Scaling.
385,875 DAI has been used for strategic finance, 537,448 DAI for growth, and 811,704 DAI for Oracles. Another 903,459 DAI has gone to developing and improving the user interface.
Employees get remunerations and other…
