MakerDAO Votes in Favor of Rune Christensen’s ‘Endgame Plan’

The plan involves restructuring the DAO into smaller teams with one aligned mission

article-image

Blockworks exclusive art by Axel Rangel

share

key takeaways

  • 80% of MakerDAO community members voted in favor of launching the Endgame Plan
  • A proposal to move $1.6 billion worth of USDC from Maker’s reserve into Coinbase Prime has also received the green-light

MakerDAO has voted in favor of moving forward with founder Rune Christensen’s “Endgame Plan” — which aims to make the protocol more decentralized.

As one of the largest DeFi protocols, MakerDAO has had to navigate complicated internal political and structural disagreements. The Endgame Plan was designed by Christensen in the hopes of improving protocol governance mechanisms. 

In early October, Christensen submitted a set of Maker Improvement Proposals (MIPs) to set the ground rules that would enable the launch of the Endgame Plan

The plan proposes a new structure for the DAO to better align incentives between the different community members —  including the DAO workforce, MKR holders, governance delegates, holders of the DAI stablecoin and Maker vault owners — by restructuring the DAO into smaller teams with one aligned mission.

These smaller teams, dubbed MetaDAOs, will each have its own governing token — they will have a specialized purpose that is aligned with the protocol at large but will be its own fully functional decentralized governance. 

In an interview with Blockworks, Lucas Vogelsang, MakerDAO community member and founder of Centrifuge — a protocol bridging real-world assets to DeFi — said the Endgame Plan will be a huge experiment for MakerDAO to figure out exactly how it can run a fintech-startup in a fully on-chain and transparent way.

“If you want to do something different, it’s not going to be building the same structures that we already have — we have to experiment a bit, and that’s what we’re doing with MakerDAO,” Vogelsang added. “We’ll see how it works in six months from now and re-evaluate.”

Another proposal which received a green light from the MakerDAO community today is moving $1.6 billion worth of USDC from Maker’s reserve into Coinbase Prime, the centralized crypto exchange’s institutional investment arm, that will allow the protocol to earn a 1.5% yield on its assets.

In a community forum, the London Business School Blockchain Society, which supported the proposal, noted that the “1.5% yield is an attractive way to bring immediate income to Maker.” 

“That said, this proposal is likely to create lock-in to holding USDC because of the revenue stream it creates, which runs contrary to the intention to decentralise our stablecoin holdings,” the group added. “We need to actively source other revenue opportunities to relieve this exposure.”

DAI is one of the largest stablecoins by market capitalization, with over $7.6 billion in circulation. Its price is pegged to the US dollar through a module known as the Price Stability Peg (PSG), which allows users to swap collateral for DAI at a fixed rate. 

Currently, USDC makes up about 39% of DAI’s backing, but following the US Treasury’s decision to sanction crypto mixer Tornado Cash, MakerDAO has been looking at alternative ways to back the protocol’s crypto treasury.

It’s, as such, unsurprising that the community has also voted in favor of transferring $500 million worth of USDC to hedge fund Appaloosa and crypto broker Monetails. The USDC will be loaned to centralized exchange Coinbase, collateralized by bitcoin and ether.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million