Risk of decoupling, Lianchuang drowning, MakerDAO's troubled times

According to BlockBeats, on November 1, former MakerDAO technical partner, DappHub CEO, and Balancer co-founder Nikolai Muchgian was found drowned on Condado beach in Puerto Rico. Only 29 years old.

Nikolai is a very active developer in the encryption field and has participated in many blockchain projects . He participated in the design of the original DAI contract architecture, created the Balancer AMM, and prevented MakerDAO from an attack similar to The DAO. After the news of Nikolai's death was confirmed, Tether founder Craig Sellars and 21st Paradigm co-founder Dylan Leclair both publicly expressed their condolences.

Three days before the news of his death, Nikolai posted on social media about the Some information from the department, and said it was threatened. "The CIA, Mossad and pedo elite are running some sort of sex trafficking racket in Puerto Rico and the Caribbean Islands. They will frame me with a laptop that my ex girlfriend, a Spy. They will torture me to death."

At present, there is little information about the progress of the incident, and it is impossible to determine whether Nikolai's death is related to the above-mentioned Entity related. But Condado Beach has always been considered a dangerous beach because of its strong undercurrent. According to local media reports, the drowning incident is the second in nearly 15 months.

The past few months have been eventful for MakerDAO. After the Tornado Cash sanctions news broke, how DAI can ensure its own decentralization capabilities has been a hotly discussed issue in the MakerDAO community and even the entire encryption field. The team also once put forward a proposal to replace all USDC with ETH.

Nikolai's passing comes just at the juncture of another major change for MakerDAO.

As early as last October, MakerDAO founder Rune Christensen Points out the current potential risks of DAI. First, more than 80% of DAI is minted with USDC-based centralized stablecoin collateral. Second, Maker itself increasingly relies on other real-world assets that may come under pressure from regulators and law enforcement. In this regard, he also proposed the concept of "Clean Money" as a new vision for the future of Maker to deal with catastrophic events in the future.

A few days before Nikolai's death, MakerDAO passed a governance The vision transition of the "Endgame Plan" ultimate plan proposed by its founder Rune Christensen. It is reported that this will promote the largest restructuring in its history. Following a recent majority vote in favor of the introduction of eight Maker Improvement Proposals (MIPs), MakerDAO will launch MetaDAO and launch a new treasury to generate more revenue for the protocol. The plan fundamentally changes several aspects of MakerDAO. (BlockBeats note, the following content is reprinted, the original text is detailed in "The largest reorganization in Maker history, DAI may decouple from the US dollar in the future" ）

Maker's "Ultimate Project"

Maker's ultimate plan is to fundamentally redesign many aspects of the Maker protocol. One of the changes is the creation of various MetaDAOs — small communities with Maker features or growing parts. Nominally, MetaDAO is supposed to help manage some of the political and interpersonal issues that Maker governance has struggled with. Each MetaDAO has its own treasury, MetaDAO does not control these treasury, but is controlled by Maker Core DAO.

Each MetaDAO will also have its own Token, operate its own front end, and will have yield farming. MakerDAO will transform from a dual-token system (plus collateral) to a multi-token system, through a complex token economic system, allowing MetaDAO to create its own value while still returning value to Maker Core. The intent is for GovernorDAO to be responsible for organizing Maker Core's decentralized workforce, CreatorDAO to focus on growth and innovation within the Maker ecosystem, and ProtectorDAO to mediate Maker Core's interactions with the real world.

Maker Core is still managed by MKR holders instead of MetaDAO Token holders and will always maintain control over all MetaDAO and its assets control. Voting in MetaDAO is a signal and execution is up to the Maker management to vote. In addition to disrupting Maker's current organizational structure, Ultimate plans to fundamentally change the types of collateral and stance MakerDAO takes.

Rune believes: “Physical strikes on cryptocurrencies can happen without prior notice, Legal users also have no possibility of rights protection. This violates two core assumptions we have used to understand RWA risk in the past, making the authoritarian threat even more serious. Rune’s motivation for including these changes in Maker is to make Maker more resistant to censorship and make it harder for regulators to exert pressure.

Rune sets up three phases for Maker:

The first one is called "Pigeon Stance", which is basically the current state of Maker. During this phase (planned to last two and a half years), Maker focuses on earning income and storing ETH for the next phase.

After two and a half years, unless it is postponed or started earlier, it will enter the "Eagle Stance" (Eagle Stance), and you will be able to Seized assets are reduced to less than 25% of total assets. They intend to break DAI's peg to the dollar at this time if necessary.

The last is the "Nirvana Phase" (Phoenix Stance), only during times of global instability or when the collateral may be attacked start up. Remember, this situation can arise at any time and without warning. At this stage, all remaining seizeable assets are sold for more ETH.

Finally, if the treasury is insufficient to pay off the debt and the protocol surplus is insufficient, MKR will be sold to the market to maintain The solvency of the agreement.

What does Maker actually change?

Not all of these changes were made before the Ultimate Project. They created an emulated vault controlled by the protocol to hold stEth. It expanded the mandate of some core units, changed the staking process, and removed some old Improvement Proposals (MIPs). The process of launching the first MetaDAOs is starting.

The rest of the plan has yet to be announced, but in a sense the countdown has begun. It is expected to move to the "Eagle Phase" in three years and may break the peg to the US dollar, but MKR Token holders can still choose to postpone the transition indefinitely. MKR holders may eventually be incentivized to prolong the "dovish phase" indefinitely and continue to find ways to continue increasing yields.

Consequences of breaking the DAI peg to the US dollar

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If MakerDAO chooses to enter the "Eagle Phase" and break the peg, then it will have a secondary impact on the entire ecosystem. Any protocol that implicitly or explicitly assumes that DAI is pegged to the U.S. dollar will face a de-peg problem. MakerDAO founder Rune Christensen is by far the loudest voice pushing for protocol change. He correctly identified the risks of the protocol, proposed a solution he supported, and passed a signal vote. But the “dove phase” structure he designed may allow MKR holders to benefit from “inaction”, thereby reducing their enthusiasm for dealing with the problems they find. If the “solution” proceeds, it will permanently change the demand for DAI and its place in the ecosystem, and potentially disrupt other protocols.

< p>Can MakerDAO survive this eventful period? What kind of exchange rate regime will it move towards? These two issues seem to define the future of the entire crypto world.

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