Will Maker DAO Developer Incentive Drive Price Up in the Short Term?

Taking the market by surprise, MakerDAO, the decentralized organization (DAO) behind the DAI stablecoin, recently announced that it will begin offering a bounty of up to $10 million to ethical hackers and cybersecurity specialists capable of reporting the legitimate security threats in its smart contracts.

Biggest bug bounty

MakerDAO, is set to roll out a bug bounty program with Immunefi, the leading crypto security services platform, promising a record $10 million payout to hackers. The platform plans to launch frontal attacks on its smart contracts is the largest bounty ever with a maximum one-time payment of $10 million in DAI.

With that, MakerDAO’s bug bounty program claims to be not only the largest hosted on Immunefi, but also the largest in the entire tech space. Notably, the Immunefi website claims that the bugs found prevented up to $20 billion in hacking damage.

For now, according to reports by Immunefi, Whitehat hackers can earn payouts ranging from $1,000 for low-level vulnerabilities up to a maximum of $10 million for critical issues found in smart contracts and Maker apps. Payments should be made in DAI stablecoins.

Notably, the next biggest bug bounty on Immunefi is a $3.3 million bounty from Olympus DAO, which was launched in January. The platform’s biggest payout of $2 million went to a security researcher who discovered a critical vulnerability in the Polygon Plasma Bridge last year.

Can this price push the manufacturer?

MakerDAO’s MKR token has often responded well to larger markets as well as ecosystem-centric developments. Again, after MakerDAO made headlines due to its latest bug bounty program, there was anticipation of a price hike for MKR among holders. However, due to Bitcoin’s price rejection at the $44.5,000 mark, the broader market trajectory turned south.

MKR, just like most altcoins, has seen more than 5% daily losses and nearly 10% weekly price declines. As the token was trading at $2,113, Maker’s greater dependence on the market in terms of price was visible.

Source: FXempire

Notably, MKR could see good long-term growth with developer incentive programs like the recently announced bug bounty. However, in the short term, the MKR price trajectory might depend on BTC and the larger marker.

Virginia C. Taylor