Maker’s Endgame

Rune Christensen has plans and a new direction for DAI

Last week Rune Christensen of Maker DAO spoke on how he felt the DAI token needed to be de-pegged from the US Dollar completely and how decentralization only comes from such a bold move.

Christensen stated that the crypto community has not shown any real promise or produced anything of value. Rune outlined two potential paths for the future of Maker.

The two paths that were stated were for 1. DeFi projects become the next fintech product and follow all regulations. 2. DeFi projects to become something else completely. The second choice comes at a risk such as being blacklisted or h aging sanctions pushed against it. Christensen suggests Maker was created to be immune to blacklisting or bending to the authorities.

Christensen suggests that”at some point in the future, there is a high probability that MAker will be hit by a severe attack by global authorities targeting any attack surface they can find, through a process similar to what led to the Tornado Cash sanctions.” Christensen believes it’s only a matter of time before the regulators come after MakerDAO. The best way for DAO is to make it as resistant to attacks as possible.

In order to do this then the biggest possibility is that DAI would have to become free-floating, meaning that it is no longer tied to USDC.

Becoming de-pegged is more likely due to the moves being made to make the protocol less resistant to attacks. Christensen outlined a major “Endgame Plan” which gives major details about his plans for restructuring MakerDAO. The plan puts a cap on Real World Assets.

Small businesses can use their own assets to mint DAI and companies with USDC like Circle  which has 50% of its stablecoin in DAI could then become vulnerable to regulators. Circle has a track record for blacklisting its own stablecoin for regulators. This type of problem is what Christensen is poised to help avoid.

Christensen plans to limit the real world collateral as a percentage of total portfolio to 25%. He also stated an interest in a “negative target rate” which is Maker’s version of negative interest rates, thus dropping demand for DAI and increasing supply. The breakdown makes clear why Maker as been called “crypto’s central bank” by some.

Interest rates being dropped on the platform will then in turn make it easier to mint more DAI and make it cheaper. The plan translates to real world assets having a cap for being used as collateral while curbing demand for DAI while making it cheaper to increase the supply of the token.

Christensen then introduced his Maker MetaDAO idea.

maker DAO

A MetaDAO is created by Maker by deploying an ERC20 token in which Maker Governance retains ownership and then generates some tokens in a treasure held by Maker Governance. More tokens will then be created and put towards distribution in the community mostly for DAI, Maker Vault, and MKR users and governance users thus creating a fully decentralized community.

The MetaDAOs have full autonomy in the pursuit of any ideas or objectives and are free to hunt down profit-generating activities. 

Christensen believes with the changes being made to Maker, the protocol will become the most exciting place in all of crypto.The plan is a bit bold but having one of the most influential members of the crypto community behind it makes it something worth watching out for.

Disclaimer: Nothing written by Solanews is meant as financial advice. Remember as always do your own research.


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