MakerDAO co-founder Rune Christensen has released a monumental new proposal to push the project into its final form, called The Endgame Plan.
Over 3,000 words, including 35 detailed infographics, Christensen explained that Maker’s current governance model creates a deadlock, making it difficult for the protocol to effectively process “complicated real-world financial deals” and compromising its competitiveness with financial institutions.
Christensen’s plan for Tuesday focuses on the formation of MetaDAOs designed to address specific governance issues within the Maker ecosystem and ease the congestion of the “slow, unitary decision-making process” that now exists. Each MetaDAO can be thought of as a subsection of MakerDAO, which would issue its own token and be governed by Maker participants interested in its particular goal.
Maker is a smart contract lending platform that issues Dai (DAI) stablecoins using Ether (ETH) as collateral.. The Maker Foundation previously handled governance of the protocol, but the decentralized autonomous organization (DAO) took over last year.
While he believes Maker’s complexity gives it the ability to pounce on the best opportunities, using MetaDAOs would help the protocol focus its capabilities into smaller, more manageable chunks.. He wrote that with risk-free MetaDAOs, “Maker’s core could be much simpler than it is today, creating a best-of-both-worlds situation:”
“MetaDAOs also allow Maker to overcome the single-threaded nature of the current governance process, and let many separate MetaDAOs prioritize and execute in parallel with almost unlimited potential for scale and autonomy.”
The first MetaDAO Christensen would see formed is M0, a CreatorDAO to look for profit opportunities outside of Maker and to take on some of the excess complexity from Maker.. M0 would issue MZR governance tokens via fair launch through yield farming.
synthetic ether
Christensen also proposes that Maker launch a synthetic ETH token called MATH to take advantage of the Merger and generate more revenue with the lowest possible upfront cost:
“The lowest fruit of the Final Plan release is the acceleration of the existing roadmap milestone to rapidly launch a simplified version of synthetic ETH.”
MATH fees could initially be set at 0% to incentivize usage, but could eventually generate revenue for the protocolas synths have done with THORChain.
The plan’s focus on revenue-generating products may be due to the fact that Maker is in the red. The main developer of Yearn.finance, Banteg, tweeted on May 27 that “MakerDAO is back in war mode” and shared an image of the proposal showing that it was no longer profitable.
Rune’s back from the vision quest. MakerDAO is in war mode again.https://t.co/XmHeWv0DGO pic.twitter.com/fCHhoKX38M
— banteg (@bantg) June 2, 2022
Rune has returned from the vision quest. MakerDAO is in war mode again.
The cryptocurrency community has had mixed reactions to the new proposal. On Friday, Rari Capital CEO Jay Bhavnani qualified the proposal “unnecessarily complex and overly optimistic for many problems.”
Nevertheless, Compound Finance founder Robert Leshner tweeted on Friday that he was excited, adding that the plan was “Complex, but in a sense it went back to the basics of what Maker was trying to do: new synthetic assets.“So far, Christensen has only proposed synthetic ETH.
I’m so pumped for the @MakerDAO Endgame Plan by @RuneKek
Complex, but in some sense, “back to the basics” of what Maker was intended to make; new synthetic assets.https://t.co/d57xO1L11t
— Robert Leshner (@rleshner) June 2, 2022
I am very excited about the Final Plan of @MakerDAO by @RuneKek. Complex, but in a sense it goes back to the basics of what Maker intended to do: new synthetic assets.
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