Rune Christensen, the founder of decentralized finance (DeFi) lending platform MakerDAO, has presented a proposal outlining plans for the introduction of upgraded versions of the DAI stablecoin and the governance token MKR. The proposal, posted on Maker's governance forum, is part of the platform's ongoing revamp and includes the launch of a unified brand and website for the protocol, expected to be implemented in the coming months.
Christensen's proposal also suggests incorporating artificial intelligence (AI) into Maker's governance processes. The initiative is part of Maker's "Endgame" restructuring, aimed at revitalizing the platform and fostering the development of applications for its stablecoin. Maker's governance has faced challenges, leading to community divisions, while the circulation of its DAI stablecoin has declined from nearly $10 billion to $4.7 billion over the past year.
The approved October initiative involves breaking Maker's decentralized autonomous organization (DAO) structure into smaller self-governing entities called SubDAOs, each with its own tokens within the MakerDAO ecosystem. Christensen had previously highlighted the need for improved branding to facilitate the growth of DAI.
According to the proposal, the introduction of the new stablecoin and governance token represents the initial phase of a five-stage roadmap for implementing the Endgame. The new stablecoin will be a wrapped version of DAI, with Maker offering incentives for protocols that integrate the token. The governance token will have a larger supply than MKR, with a 1200:1 exchange rate to MKR. Token holders will gain access to Maker's AI-assisted governance tools, facilitating the summarization, verification, and generation of governance proposals.
Existing tokens, DAI and MKR, will remain unchanged, and users will be able to upgrade their holdings to the new assets without fees or limitations. Both new tokens will provide yield farming opportunities for holders to earn rewards. However, farming access will be geoblocked for U.S.-based investors and VPN users.
Christensen stated that the short-term objective of the Endgame is to become the largest and most widely used stablecoin project within three years. The proposed upgrades aim to position MakerDAO as a leading player in the DeFi ecosystem, leveraging enhanced stability, governance, and innovation to drive the project's growth and adoption.