Montenegro makes Vitalik a citizen, part of plans to promote it as a blockchain hub

April 15, 2022 Coin Telegraph

The small southeast European nation is beginning to sift through the murky waters of blockchain regulation by granting the Ethereum co-founder citizenship.

The Montenegrin government has begun fulfilling its pledge to become a hub for blockchain innovation by reportedly making Ethereum creator Vitalik Buterin its newest citizen.

Montenegrin news outlet RTCB reported that Prime Minister Zdravko Krivokapić recommended Buterin receive the privilege to help the southeastern European nation promote its efforts to become a blockchain innovation hub.

There does not appear to be an official announcement, however this photo was reportedly shared by the Minister of Finance and Social Welfare Milojko Spajić when Buterin received his passport.

Vitalik Buterin receiving citizenship to Montenegro from the Minister of Finance and Social Welfare Milojko Spajić. Source: Twitter

Montenegro hosted the Ethereum (ETH) co-founder on April 7 at the Future Now! panel discussion hosted by Minister Spajić. There, panelists Buterin, Ethereum researcher Vlad Zamfir, University of Memphis Professor of law Boris Mamlyk, and Minister Spajić spoke on the legality of blockchain identity, smart contracts in government, and other topics.

Budućnost Sad! Kripto zakon, inovacije, zajednica

Prilika za uspostavljanje zdrave, održive, blokčejn industrije u službi naroda.

V.Buterin - osnivač ETH
V.Zamfir - glavni istraživač ETH
B.Mamlyk - internacionalni profesor prava
M.Spajić - moderatorhttps://t.co/PvBNeQi52n pic.twitter.com/X9WCNJz6eZ
— Milojko Spajić (@MickeySpajic) April 7, 2022

In an April 4 meeting, Prime Minister Krivokapić, Buterin, and several other government officials also discussed Montenegro’s options in terms of the blockchain industry, as reported by local news outlet Mina. One important aspect brought up was how to regulate crypto for his citizens.

Minister Spajić stated that he wishes his country to be strict on criminals in the industry, but feels fairness would stimulate growth and “reduce the gray economy in all areas.” He added:

"Montenegro strives to become a center of innovation in blockchain technology with an emphasis on all the advantages of a legitimate industry that will bring attractive regulations.”

Montenegro’s government is now starting to dig into the complicated regulatory entanglements that come from integrating blockchain technology into its various systems.

During the Future Now! event, the panelists focused on the issue of how people can legally create a community using blockchain and legally verify their identity and stay protected against identity theft. Mamlyk suggested that decentralized autonomous organizations (DAO) could issue DAO tokens for people to prove their identity as a member while protecting their privacy. However, Buterin said “there is no magic one-line principle” that can deal with bad actors.

When asked about whether Montenegro should allow companies to register as DAOs, Buterin referred to Wyoming which recognizes DAOs as legal entities. He said that such an application of decentralized governance is a “good first step” and may be “a good place to start” for Montenegro.

MakerDAO community proposal to replace MKR governance token

March 16, 2022 Coin Telegraph

Coin Telegraph

The proposal introduces a new stkMKR token which will act as a bonding asset for MKR staked in governance proposals.

The community behind decentralized stablecoin platform MakerDAO is mulling over a major tokenomics shift that could replace its governance token, MKR.

A proposal was made on the MakerDAO forum by community leader “monet-supply” on March 14, outlining an alternative token economic mechanism. If the proposal passes a full governance vote, the protocol could replace its current governance token, MKR, with a new token called stkMKR.

There were many responses to the proposal within just a few hours of it being posted, most of which were positive and regarding the technicalities of the solution. From the proposal and discussion stage, it will need to be submitted as a MIP (Maker Improvement Proposal) for a formal vote by MKR holders which usually takes two weeks.

The staking proposal addresses some issues and inefficiencies with the current tokenomics model, which operates a “buyback and burn” mechanism. It was suggested by ‘monet-supply’ that there are several drawbacks to the existing mechanism, including a lack of targeted incentives since buyback and burn returns all capital to MKR holders.

There is also a “weak crypto narrative” according to ‘monet-supply’ who said that MKR issuance could be put towards improving the protocol. The current system also has limited deterrence against governance attacks or voting manipulation.

⚒️ @MonetSupply presented an idea of an alternative token economic mechanism that could supplement the current MKR buyback value accrual system.

stkMKR? Read the entire thread:https://t.co/1hEORZTblu
— Maker (@MakerDAO) March 14, 2022

The proposed solution is a new stkMKR token which would replace MKR as the core governance token of MakerDAO. It would act as a staking or bonding token issued to those who have deposited MKR for governance purposes.

“stkMKR will be non-transferable, and represents MKR staked in governance. Staked tokenholders will receive a share of MKR tokens purchased through surplus auctions, so stkMKR will be backed by an increasing amount of MKR over time.”

*Surplus utilization mechanism. Source: forum.makerdao.com*

‘Monet-supply’ said the rewards mechanism has been improved upon, and there will be greater incentives to stake using the new system.

MakerDAO allows users to deposit crypto assets as collateral to generate the decentralized stablecoin DAI. This can then be used elsewhere, such as other DeFi protocols or liquidity pools. The DAI is burnt when the “loan” is repaid, and the collateral is withdrawn.

MKR prices were trading flat on the day at $1,766 at the time of writing, according to CoinGecko. However, the token has dropped 11% over the past fortnight and is currently down 72% from its May 2021 all-time high of $6,292.