MKR Staking Rewards to Encourage Delegation/Voting

The low percentage of MKR token holders that directly vote or delegate their vote is a threat to Maker DAO governance. A significant reason people to not directly vote is the gas costs. Although delegation mitigates this, it still leaves the other problem is that their are ways to earn yield in both DeFi and CeFi platforms with the MKR token. This does just disincentive lower MKR voting and delegation participation in by token holders, it is an attack vector since a single entity can borrow a large amount of MKR, vote in a malicious manner and then pay back the MKR loan at little cost.

My proposal is to provide a variable staking reward to those who either delegate their vote or who vote regularly. The staking reward should be in lieu of funds currently allocated to burn MKR. Instead of MKR being bought back and burnt, it should be used as a staking rewards. Although it may not be much, I do not think we need to offer higher yields than DeFi and CeFi money markets for MKR aligned holders to delegate or vote. We just need to offer something that will reimburse for gas costs and provide a little yield to narrow the difference versus lending out MKR.

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First of all welcome to the community @StableRare.

You raise some good points and the community has already started a discusion regarding governance participation here. I encourage you to add your voice to that thread as you are more likely to gain more perspective and more response there.

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