On July 19th, MakerDAO's Smart Burn Engine was activated in the early hours of the day. The current treasury surplus amounts to $69.2 million, out of which more than $50 million (approximately $19.2 million) will be used for MKR repurchases and added to Uniswap V2 as LP (Liquidity Provider) with DAI. On-chain data shows that the current average time between repurchases is approximately 27 minutes, with an average repurchase amount of around $5,000.
On July 17th, MakerDAO's community voted in favor of the “Smart Burn Engine and Initial Parameters Introduction” proposal, which is set to be executed after July 19th, 2023, 3:44 AM Beijing time. The Smart Burn Engine is a novel smart contract system designed to distribute surplus Dai from the Maker Surplus Buffer, which was previously not utilized as an emergency reserve. Unlike previous burning designs, the MKR tokens will accumulate in the form of Uniswap V2 LP tokens rather than being acquired and burned. As per the proposal, the Dai Savings Rate (DSR) will also be reduced from 3.49% to 3.19%, with simultaneous reductions and reductions in the liquidation ratio (mat) and stability fees for each pool.