This weekend, members of the stablecoin exchange Curve began voting on a new proposal aimed at allocating 10% of the fees generated from crvUSD loans for crvUSD savings. According to Curve founder Michael Egorov, this proposal targets the growth of crvUSD, which currently has a market value of $60 million.
Curve DAO Proposal
If the proposal is accepted and crvUSD scales, the protocol could generate more revenue for governance members in the long term. However, expecting the same revenue in the short term might be challenging. So far, eight addresses controlling approximately 10 million tokens have participated in the proposal, constituting about 30% of the total voting power.
Voting is currently in the confirmation phase with majority support for the proposal and is set to conclude on Friday. Egorov emphasized in a statement on the X platform on November 2 that the proposal would lower borrowing rates for crvUSD, reduce costs for borrowers, and increase the supply of crvUSD.
Community Response
A supporter known by the handle Crv.Mktcap expressed concerns that the proposal could harm Curve’s governance token and locked token investors in the short term. Nonetheless, it was argued that the increased stablecoin supply would provide more revenue to andCRV investors in the long run.
“If the proposal is accepted, andCRV investors will have to forgo some of their income to finance the savings rate.”
Curve is a crypto exchange focused on stablecoin swaps and ranks as the 15th largest decentralized finance protocol with a total locked value of $1.7 billion according to DefiLlama. These developments indicate that Curve aims to expand the crvUSD ecosystem and provide greater contributions to its users. The outcome of the voting could significantly impact the future growth of crvUSD and the financial strategies of the Curve community.
