0xdc010abe…e771sent to0xb024ac5a…a016·#24,369,888·view on Etherscan
# Update Penalty Rate to 0%
The MAP (Monetary Adaptation and Policy) Committee is proposing to reduce the Penalty Rate from 1 bp to 0. The Penalty Rate applies when a Minter fails to meet defined operational obligations, such as timely collateral reporting or remaining within permitted debt limits. As the M0 network has scaled materially in total value, operational maturity and number of minters, a non-zero Penalty Rate now imposes a disproportionate economic impact relative to the operational issues it is intended to address. Setting the Penalty Rate to 0 bps acknowledges the network’s growth and operational maturity, and supports a shift toward more precise and effective governance tools as the ecosystem continues to scale.
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