DAI’s supply has been growing at a rapid pace since the beginning of March. Its supply climbed from 4.42 billion on March 9 to 5.48 billion on May 12, a 24% jump in just over two months.

From October 2023 into March, DAI’s supply was on more of a downward trend, with two particularly large drops at the end of January and the start of March.

At its core, there are really two components to DAI’s circulating supply: The actual outstanding supply dictated by mints and burns on the network and the supply deposited into the DSR, or the Dai Savings Rate. Currently, the way depositing into the DSR works is that DAI itself is actually burned to mint SavingsDAI, or sDAI, as you can see in this transaction. And then on the converse, when you withdraw from the DSR, DAI is minted, and you …