Maker founder put forward MetaDAOs and synthetic ETH

03-Jun-2022 By: Shikha Jha

Rune Christensen, the co-founder of MakerDAO,

has released The Endgame Plan, a new gigantic plan aimed at bringing the project to its final form.

Christensen highlighted in 3,000 words and 35 detailed infographics that Maker's existing governance arrangement produces a gridlock, making it difficult for the protocol to successfully conduct "complex real-world financial deals" and jeopardizing its competition with financial institutions.

The development of MetaDAOs, which are aimed to address specific governance challenges inside the Maker ecosystem and ease the load on the current "slow and single-threaded decision-making process," is at the heart of Christensen's May 31 plan. Each MetaDAO can be viewed as a subset of MakerDAO, with its own token and governance overseen by Maker members interested in achieving its specific purpose.

Maker (MAKER) is a smart contract lending system that uses Ether as collateral to issue DAI stablecoins. Protocol governance was formerly handled by the Maker Foundation, but the decentralized autonomous organization (DAO) took over last year.

Although he believes Maker's diversity allows it to seize the best chances, he believes that using MetaDAOs would allow the protocol to focus its powers on smaller, more controllable portions. He argued that "the Maker Base might become a bit easier than it is today, producing a best of both worlds situation" with de-risked MetaDAOs.

The first MetaDAO Christensen envisions forming is a monetary base (M0), a CreatorDAO that will look for profit opportunities outside of Maker while also taking on some of Maker's excess functionality. In a fair launch, M0 would release MZR governance tokens through yield farming.

Synthetic Ether

The maker should also develop a synthetic ETH token called MATH to take advantage of the Merge and produce more money with the lowest feasible starting cost, According to Christensen, “the quickest way to launch a simpler version of Synthetic ETH is to speed up the existing roadmap milestone.”

MATH fees could start out low to encourage adoption, but as synths have done for THORChain, they could eventually provide income for the system.

It's possible that the plan's emphasis on revenue-generating goods stems from Maker's current financial situation. Yearn Finance (YFI) core programmer Banteg tweeted on Friday that "MakerDAO is in combat mode again," and released a screenshot from the proposal that showed it was no longer profitable.

The new plan has received varied comments from the crypto community. The idea is "unnecessarily difficult and over-optimizing for many difficulties," according to Rari Capital CEO Jay Bhavnani, who stated on June 3.

Compound Finance (COMP) founder Robert Leshner, on the other hand, was ecstatic, tweeting on June 3 that the idea was "complex, but in some ways, back to the basics of Maker's original goal to create new synthetic assets."

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