Dragonfly Capital, Paradigm Buy $27.5M Stake in Governing MakerDAO's Future

Venture funds Dragonfly Capital and Paradigm have acquired $27.5 million worth of MKR tokens and plan to take part in the Maker Protocol's governance system.

It's expected Dragonfly and Paradigm, who already have a strong presence in the region, will advise on the expansion.

"The support and expertise of Dragonfly Partners and Paradigm will give Dai an unparalleled advantage in driving innovation and adoption in Asia.".

The joint purchase means Dragonfly and Paradigm now control approximately 5.5 percent of the total MKR token supply.

The acquisition makes Dragonfly and Paradigm the second-largest private holder of MKR tokens.

VC firm Andreessen Horowitz remains the single largest private holder with the 6 percent stake it acquired in September 2018.Dragonfly and Paradigm intend to play an active role in maker's onchain governance.

Both Dragonfly and Paradigm will operate their own stakes independently of one another.

Nearly $320 million worth of assets are already locked in dai smart contracts, according to DeFi Pulse.

In a statement, Dragonfly Capital managing partner Alexander Pack said, "Asia is the most important market for crypto in general. It is also home to the largest concentration of the unbanked and underbanked around the globe, which we believe represents an enormous pent-up demand for decentralized financial products."

Dragonfly participated in the seed round for ethereum scaling solution Matter Labs.