MakerDAO founder proposes dedicated blockchain and new DAI and MKR tokens
Rune Christensen outlines roadmap for controversial Endgame plan.
Rune Christen, the founder of MakerDAO, wants the DeFi stalwart to roll out a new stablecoin, governance token and even an entirely new blockchain, in an update to Maker’s controversial Endgame roadmap.
According to a May 11 governance proposal, Christensen said the new governance token would redefine MKR at a ratio of 1,200 to 1, that Maker would mobilize surplus assets to provide on-chain liquidity for the new stablecoin, and that the project’s future is dedicating blockchain. , or appchain, would be secured by Ethereum.
The proposal comes as Maker prepares to dramatically restructure under its Endgame roadmap, which will reorganize MakerDAO into a series of specialized subDAOs or “metaDAOs.” The new Maker tokens allow users to create subDAO tokens and participate in metaDAO governance.
“[MetaDAOs] build their own unique management processes, which enable rapid parallelized growth, specialization and decision-making.”
Christensen said. “By delegating day-to-day complexity to SubDAOs, MakerDAO significantly streamlines the workload and complexity that Maker Governance needs to handle.”
Christensen said the new tokens will allow Maker’s ecosystem to converge under a single cohesive brand, addressing the siled branding created by the existing DAI and MKR tokens.
Users will be able to wrap DAI and MKR in the new tokens, with new names still to be determined, or unwrap them for free at any time.
MakerDAO is the second largest DeFi protocol with a total value of nearly $7B locked up, according to The Defiant Terminal. Users mint DAI against securities deposited to the MakerDAO protocol. DAI is the fourth largest stablecoin with a capitalization of $4.7 billion, according to CoinGecko.
The Maker community adopted Endgame last October and ratified the “Endgame Constitution” in late March, paving the way for Maker to embark on its ambitious makeover.
However, many community members criticized Christensen for mobilizing an outsized share of the vote via governing delegates, with Christensen influencing the outcome of the Endgame Constitution by awarding 65% of all votes cast.
Christensen’s latest proposal said the Endgame roadmap will roll out over five phases, starting with MakerDAO rebranding, distributing its new tokens and launching a new website.
Maker would launch a native farm for its new governance token (referred to as “NewGovToken” for now) and issue 10 million NewGovTokens every year – the equivalent of SEK 8,333 million per year (about $5.3 million). The protocol will block VPN and US-based users from accessing all farming and yielding opportunities for the new tokens.
The Maker protocol will provide large volumes of its new stablecoin (“NewStable”) and DAI to see liquidity on large decentralized exchanges.
The protocol will also accumulate LP tokens for NewStable/NewGovToken using surplus protocol assets that exceed $50 million.
“The goal is to distribute enough assets that NewStable will have more liquidity on the chain than DAI from the moment it launches,” the document says.
Maker will also earmark incentives for projects that integrate support for NewStable.
Christensen plans for Maker to roll out the first six SubDAOs during the second phase of Endgame’s rollout.
Endgame will reorganize MakerDAO into a series of specialized subDAOs or “metaDAOs” with their own tokenized governance. Maker hopes the restructuring will coordinate management at the same time as Maker’s increasingly complex operations are abolished.
“By delegating day-to-day complexity to SubDAOs, MakerDAO significantly streamlines the workload and complexity that Maker Governance needs to handle,” the document states. “The primary tasks of SubDAOs include user acquisition and maintenance of decentralized interfaces.”
Maker will also launch yield farms for metaDAO tokens, issuing 35M native tokens for each subDAO to users who stake NewStable or NewGovToken annually. The first tranche of metaDAOs includes two “FacilitatorDAOs” and four “AllocatorDAOs.”
AI-powered management tools
Christensen said Maker would increase the development and use of “production-grade AI tools for management monitoring and improvement” during the third phase of Endgame’s rollout.
Phase three received mixed reactions on Maker’s governance forum, with Flipsidegov challenging the consistency of AI systems.
“AI tools have very large fidelity problems, especially with highly formalized systems,” Flipsidegov said. “Recommend later developments not be conditioned on AI development being where it needs to be for this to work.”
Christensen responded that AI will not drive governance, but will be used “as a redundant assistant tool specifically optimized to help participants who are more on the periphery of the ecosystem.”
“Actual decisions should be taken by domain experts,” he added.
NewGovToken will also provide token-gated access to Maker’s AI tools.
Encourage participation in governance
In a move that sounds like Maker’s answer to ve-tokenomics, Christensen plans to incentivize long-term participation in governance through a so-called “Sagittarius Lockstake Engine” in phase four.
NewGovToken holders can unlock tokens and delegate their voting rights to an AI-informed governance strategy. Delegators receive a share of the rewards equal to 30% of the NewStable protocol revenue, but incur a 15% fee on output that is burned.
Christensen said Maker will launch on an Ethereum-secured Appchain during the final phase of Endgame. Christensen said NewStable, NewGovToken, DAI and MKR will continue to function normally on Ethereum despite Maker’s new chain.
Christensen said NewChain allows hard forks, which are akin to software upgrades, so the protocol can more easily recover from “catastrophic governance disputes.”
“This provides a final level of governance security to users, businesses and protocols that rely on Dai Stablecoin and NewStable, ensuring that even the most extreme governance attack scenarios will only have a minimal impact on their user experience and will not put their funds or their stability at risk, he continued.
Christensen added that Maker will “permanently enter Endgame State” after NewChain goes live, preventing further major changes from being made to the protocol.