In light of recent discussions about decoupling its native token from USD Coin (USDC) amid the sanctioning of MakerDAO co-founder Tornado Cash, Rune Christensen, reached out to the community to explain why the free-floating DAI may be the only option for the Decentralized Autonomous Organization (DAO).
In his blog post, “The Path to Compliance and the Path to Decentralization: Why Maker Has No Choice But to Prepare to Free-Float DAI,” Christensen revealed that he miscalculated the risks associated with risk-weighted assets. (RWA). He stated:
“The physical crackdown on cryptocurrencies can happen without warning and with no chance of recovery, even for legitimate and innocent users. This violates two basic assumptions we use to understand RWA risk, making the authoritative threat that much more serious.”
While revealing the protocol’s inability to comply with regulators, Christensen suggested that “we must choose the path of decentralization, as was always Dai’s intent and purpose.”
He believes decentralizing Maker would reduce the impact of enforcement measures on the protocol in general, adding that “The only option is then to limit the attack surface by reducing RWA exposure to a fixed maximum percentage of the total collateral, which requires a free float away from the USD.”
It is important to note that more than 50% of DAI is currently guaranteed by USDC, as daistats data shows.
Joey Santoro, the founder of decentralized finance (DeFi) platform Fei Protocol recommended revoking the Tribe DAO stake after reimbursing Fuze victims.
Previously, The Rari Fuze hacker was offered a $10 million reward for returning $80 million worth of assets, but Fei Protocol received no response from the attacker.
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