MakerDAO, the decentralized organization behind the Maker protocol and its DAI stablecoin, voted to substantially increase its US Treasury holdings.
After a recent vote in which 75% of voters were in favor of the move, the DAO will now allocate up to $750 million for purchasing treasuries.
This isn't the first time MakerDAO has bought treasuries, and the income generated from the DAO's previous Treasury buys and investments in other real-world holdings helped MakerDAO offset a significant revenue decline.
This new investment strategy could more than double MakerDAO's exposure to US Treasuries. In October 2022, the DAO voted to invest up to $500 million in treasuries and corporate bonds. It appears that this strategy has been beneficial in helping Maker navigate the bear market.
A report published last month by the DAO revealed a sharp decline in Maker's net income. The organization profited $90 million in 2021, but profit dropped to just $19 million in 2022. Despite representing only 10% of the DAO's holdings, real-world assets, including treasuries, generated half of the protocol's earnings.