A new proposal has been submitted to the Maker forum that calls for revisiting its tokenomics. The proposal called “Sagittarius Engine” has been introduced by MakerDAO founder & CEO Rune Christensen.

Christensen is urging the community to learn from the innovation in the decentralized finance (DeFi) sector —

“the most powerful forms of tokenomics that are working elsewhere in the ecosystem, that can maximize our growth and ability to have an impact on the world.”

With Sagittarius Engine, the goal is to better direct the value flows of the Maker Protocol towards long-term governance participants. Also, to provide the push to get a passive MKR holder to begin participating.

This Engine also has a “burn-like” effect as it locks up and removes large amounts of MKR in a short amount of time.

The basic concept of the Sagittarius engine is to gather the cash flows of the protocol into a capital pool called a Bucket, which is then used to offer long term MKR holders the ability to borrow Dai from the Bucket using their MKR as collateral on very good terms and with preferential liquidation, that is a very long grace period.

To access this feature, MKR holders would have to lock up their MKR between 1-4 years. Locking up MKR this way will also increase the voting power of the locked MKR by up to 2x.

The CEO also covered MKR issuance and yield farming that will create clear and direct value and benefits to MKR holders while removing all constraints on resources available.

When it comes to issuance, it will be designed to last for the entire Age of Sagittarius, acting as a force of economic gravity that drives the direction of the community, increasing governance stability.

“In total I propose that it will last over a period of 50 years, with an initial boost phase, followed by a ramp-up phase and a long tapering phase.”

Christensen has proposed a total of 2 million additional MKR to be issued, bringing its total supply to 3 million.

He further wants Maker Governance to experiment with different ways to distribute the new MKR while providing options like offering MKR as standard yield farming rewards for users who have specific flagship collateral vaults, such as ETH or ETH-LP tokens and providing flagship collateral vaults a special “discounted option” to purchase MKR pre-locked in Sagittarius at a steady rate.

Other options are to directly sell MKR for Dai using dutch auctions or at a discount using “bonds” or sell MKR pre-locked in Sagittarius at a discount.

Christensen wants to go with an option that provides the outcomes that will be “key to making the overall project a success and giving Maker the momentum it needs to grow to the next level.”

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