MakerDAO Proposes the Addition of Bancor Network Token (BNT) as Collateral for DAI

MakerDAO, a smart contract project built on Ethereum, has released a proposal to add Bancor Network Token (BNT) as one of the collateral assets that would generate the DAI stablecoin on its protocol. 

The proposal was announced to the MakerDAO community today, enabling members to vote for or against the plans using the network’s governing token, MKR tokens. 

MakerDAO operates a decentralized governance system whereby MKR holders can participate in important decisions of the network, including choosing what kind of asset to be added as collateral in the system, adjusting various policies of the DAI stablecoin, as well as improving the network’s governance. 

If a majority of members vote for the addition of BNT token as a collateral asset on MakerDAO, the token will join other assets already on the list.  

Last month, MakerDAO added two tokens, Kyber Network Coin (KNC) and ZRX coin, to the list of its collateral assets after an extensive discussion of the pros and cons of both tokens. 

Bancor Protocol describes itself as s a standard for a new generation of cryptocurrencies called Smart Tokens. The project enables automatic price determination and an autonomous liquidity mechanism for tokens on smart contract blockchains. 

Bancor has already commenced the initial deployment of its long-awaited version 2 mainnet, by integrating Chainlink provided BNT/USD and KNC/ETH decentralized data oracle. 

Its native currency, Bancor Network Token (BNT), acts as a bridge between two digital currencies, thus allowing them to be traded. BNT was released in a 2017 ICO that raised $150 million and has been listed on several exchanges, including Binance, Bittrex, and OKEx. 

Meanwhile, in November 2019, MakerDAO announced the launch of a rebranded DAI token called Multi-Collateral Dai (MCD). As announced, the token would be backed by different types of assets and will further help strengthen DAI’s stability.