Rune Christensen, one of MakerDAO’s co-founders, has presented The Endgame Plan. This is a new major strategy for the project to reach its ultimate form. Christensen’s proposal for MakerDAO focuses on developing MetaDAOs to solve particular governance issues in the Maker ecosystem.
The team is working on a solution to allow the organization’s stakeholders and other interested external parties (e.g., investors) and other entities within the system (e.g., smart contracts) to join forces with each other to form new DAOs. The MakerDAO branches into separate MetaDAOs, each with their own goals and strategies, but all working together to support the Maker ecosystem.
MakerDAO Plans to Simplify Financial Deals
The Maker system uses Ether as collateral to create DAI stablecoins. The Maker Foundation previously governed the protocol, but the DAO took over last year.
Maker’s existing governance structure, according to Christensen, causes a jam in 3,000 words and 35 detailed infographics. This makes it harder for the protocol to manage “numerous real-world financial transactions.” It also puts its competitiveness with banks at risk.
He thinks Maker’s complexity enables it to take the best chances, but employing MetaDAOs would let the protocol concentrate its strengths on smaller, more manageable pieces.
M0 will be a CreatorDAO that scans the market for opportunities for profit outside of Maker. And it will relieve some of Maker’s complexity. For example, in a fair launch, MZR governance tokens would be distributed by yield farming via M0.
Christensen said, “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.”
MATH: Synthetic ETH for Low Start-Up Fees
According to him, the Maker platform should also create a synthetic ETH token known as MATH in order to take advantage of Merge and generate more cash at the lowest possible start-up cost.
Fees for performing MATH operations might start out low to encourage usage, but as synths have done for THORChain, they may end up paying the system in the long run. The post-MakerDAO proposal for Endgame includes MetaDAOs appeared first on The Block.
Positive and Negative Reactions
The new initiative has received a variety of responses from the cryptocurrency sector. Compound Finance’s Robert Leshner was ecstatic, claiming that while the plan is complicated, the new synthetic assets should aid.
Meanwhile, Ethereum co-founder Vitalik Buterin has given a more tempered response. He believes that while the MetaDAO idea is interesting, it may not be the best solution to Maker’s problems.
Others have raised concerns about centralization. For example, the team behind the DeFi Pulse website claimed that the new system may lead to “a single MetaDAO becoming more powerful than the Maker Foundation itself.”
However, while most analysts agreed that the concept was promising, few were as enthusiastic about it as Rari Capital CEO Jay Bhavnani. The notion is too complicated for me to consider further, he said.
Bhavnani also believes that the proposal may not be “fully baked.”
The goal of the MetaDAO structure is to decentralize power and responsibility within the Maker project. This will allow for more community involvement in the decision-making process and a more robust and resilient ecosystem.
Once the proof-of-concept is complete, the team will seek feedback from the community to refine the proposal. Christensen invites anyone interested in contributing to the Endgame Plan to participate in the discussion.