The MakerDAO community has passed a referendum to reduce the PSM-USDP-A debt ceiling from $500 million to zero. The related executive vote is expected to take place within 30 days of the passage of this referendum.

The proposal argues that holding USDP will not generate income for MakerDAO and will harm its capital efficiency. This decision will have a significant impact on the troubled stablecoin issuer Paxos, as the Maker Treasury holds about half of the $1 billion supply of USDP. New York state regulators asked Paxos to stop minting stablecoin BUSD in February this year. (CoinDesk)