Although MakerDAO’s dai ($DAI) might be considered the most successful decentralized stablecoin, the founder aims to rebuild the project from scratch (and kill DAI) with an ambitious Endgame proposal. What's the reasoning for such a radical change?
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Despite MakerDAO's dominance in the #DeFi market, capturing nearly 40% of all DeFi profits on #Ethereum, its founder Rune Christensen believes the project is at risk of collapse.
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So, the proposal, now known as Endgame, might be considered a rescue plan for the project while involving a massive expansion of Maker. It involves releasing new stablecoins to replace $DAI, establishing new ways revenue mechanisms, and exploring unlimited new business opportunities through the creation of subDAOs.
("Here's what's on the horizon")
The new project will be gradually released in its final form and, once finalized, will be unchangeable, requiring no upgrade, and fully independent from its mother project, Maker.
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Christensen explained his motivation in great detail in an interview with Coindesk:
"It really all came from the problem of the politics [...] The budgets. I saw what was happening, and then I started extrapolating and I realized it would get so much worse – like, the project would die. That’s where the idea of subDAOs came from, a way of starting from fresh so you can set the right direction, the right momentum, with the right knowledge," — Rune Christensen for Coindesk.
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The core idea of Endgame, according to Christensen, is to reach an 'end state' for the system, making it immutable to the extent that’s possible. However, to meet market demands, the system has to be able to adapt. That's where subDAOs step in to take care of all the complexity, adaptation, and innovation that can attract new users.
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As part of the Endgame, in May, Christensen unveiled two new stablecoins: NewStable and PureDAI, which are meant to eventually replace $DAI. NewStable (a working title) will be the main successor to DAI, focused on growth, yield, and resilience, taking over MakerDAO's RWA aspect.
PureDAI, as per Christensen, is a return to the project’s 'ideological roots,' featuring a free-floating target price, decentralized collateral through ETH and staked ETH (stETH), minimal governance (no budgets or contributors), and simple tokenomics.
What’s unique is that PureDAI also provides an opportunity to experiment with tokenomics as part of Maker’s Endgame roadmap. The plan is to provide permanent emissions to support demand and growth without ever having to return to a negative rate.
"Maker Endgame will bring the ultimate, easy-to-use money app for saving and growing your money. And if you want to make saving even more fun you can farm tokens with Endless DeFi Summer. All powered by a sustainable economy based on a stablecoin with native yield," Rune Christensen.
The real basic concept of Endgame, as per Christensen, is growth and resilience. It has to be something that can grow exponentially while becoming more and more resilient as it grows.
"That's basically where the whole journey begins. We have to see what actually works in practice before we commit to something and follow market cues. It's hard to predict everything in advance and then just build it exactly the way it was predicted. Usually that would not result in something that is actually very useful to people. It's better to sort of figure out what people actually want and then move in that direction with it," — Rune Christensen for Coindesk.
(Rune's reasoning one can find in an interview)
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