MakerDAO’s plan to bring back ‘DeFi summer’

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11 Jan 2024

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MakerDAO, the decentralized autonomous organization (DAO) that has been a pioneer in the decentralized finance (DeFi) space, is planning to bring back the DeFi summer. The founder of MakerDAO, Rune Christensen, has a bold plan to overhaul the protocol and make it more decentralized. The plan is ambitious and complex, to the point that it took hours to explain in a recent podcast. But Christensen is determined to make it work. He wants to bring back the enthusiasm and excitement of the DeFi summer but ensure that it doesn’t end in a crash.

In brief:

MakerDAO, the decentralized autonomous organization (DAO) that has been a pioneer in the decentralized finance (DeFi) space, is planning to bring back the DeFi summer.
The founder of MakerDAO, Rune Christensen, has a bold plan to overhaul the protocol and make it more decentralized. The plan is ambitious and complex, to the point that it took hours to explain in a recent podcast.
The plan involves setting up several new decentralized autonomous organizations (DAOs) that will operate under the MakerDAO umbrella. These DAOs will be responsible for different aspects of the protocol, such as risk management, marketing, and community development.

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What is MakerDAO?

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MakerDAO is a decentralized autonomous organization (DAO) that operates on the Ethereum blockchain. It is a protocol that allows users to create and manage a stablecoin called Dai. Dai is pegged to the US dollar and is backed by collateral in the form of other cryptocurrencies. MakerDAO is one of the most popular DeFi protocols, with billions of dollars in value locked in its smart contracts.

The DeFi Summer of 2020

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The DeFi summer of 2020 was a period of explosive growth for the DeFi space. The total value locked in DeFi protocols surged from less than $1 billion to over $10 billion in just a few months. MakerDAO was at the forefront of this growth, with the value of Dai increasing from $1 to $1.10 during this period. However, the DeFi summer was short-lived, and the market crashed in September 2020.

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MakerDAO’s Plan to Bring Back DeFi Summer

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MakerDAO’s plan to bring back DeFi summer is called the Endgame plan. The plan involves setting up several new decentralized autonomous organizations (DAOs) that will operate under the MakerDAO umbrella. These DAOs will be responsible for different aspects of the protocol, such as risk management, marketing, and community development. The goal is to make the protocol more decentralized and less reliant on a single entity.

The Endgame plan is ambitious and complex, but it has the potential to revolutionize the DeFi space. The plan involves hiring an external marketing firm to rebrand the entire operation into something that seems cool and fun. Six new subDAOs will tilt at various windmills, attracting yield farmers and savers with the opportunity to nab millions of NewGovTokens and NewStables (placeholder names until the rebrand). And, in an attempt to goose the price, they’re redenominating each Maker (MKR) token into 24,000 NewGovTokens.

MakerDAO will operate like a central bank, setting monetary policy for the subDAOs. The plan aims to improve governance and tap into “the raw power of modern decentralized finance (DeFi) innovation.”

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Conclusion

MakerDAO’s plan to bring back DeFi summer is ambitious and complex, but it has the potential to revolutionize the DeFi space. The plan involves setting up several new decentralized autonomous organizations (DAOs) that will operate under the MakerDAO umbrella. These DAOs will be responsible for different aspects of the protocol, such as risk management, marketing, and community development. The goal is to make the protocol more decentralized and less reliant on a single entity. The Endgame plan is a five-phase plan that involves hiring an external marketing firm to rebrand the entire operation into something that seems cool and fun. Six new subDAOs will tilt at various windmills, attracting yield farmers and savers with the opportunity to nab millions of NewGovTokens and NewStables (placeholder names until the rebrand). And, in an attempt to goose the price, they’re redenominating each Maker (MKR) token into 24,000 NewGovTokens. MakerDAO will operate like a central bank, setting monetary policy for the subDAOs. The plan aims to improve governance and tap into “the raw power of modern decentralized finance (DeFi) innovation.”

References:
Cointelegraph. MakerDAO’s plan to bring back ‘DeFi summer’ — Rune Christensen.
CoinDesk. MakerDAO Members Support Founder's 'Endgame' Plan to Break ...
ADVN. MakerDAO’s plan to bring back ‘DeFi summer’

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