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MakerDAO's Final Upgrade Plan in Five Phases! Issuing New Stablecoin, Governance Token, and Abandoning U.S. Users

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MakerDAO

The co-founder of the Ethereum lending protocol MakerDAO, Rune Christensen, proposed the "Endgame Plan" in August last year, aiming to repair and improve MakerDAO and its governance and ecosystem to achieve a self-sustaining balance, also known as the "Endgame State." Yesterday, Rune presented the five-phase plan of the Endgame Plan.

For readers unfamiliar with the Endgame Plan, it is recommended to first read this article: MakerDAO Endgame Proposal | A Long-term Plan to Become the Fair World Currency?

The Endgame Plan Five Phases

The Endgame Plan is divided into the following five phases:

  1. Beta version launch
  2. SubDAO launch
  3. Governance AI tool launch
  4. Governance participation incentive mechanism launch
  5. Release a new blockchain and enter the endgame state

The Endgame Plan Introduces New Tokens

In the first phase of the Endgame Plan, the team will create a unified ecosystem brand to address the issue of the disjointed concepts of Maker and DAI brands.

However, the DAI and MKR tokens will not be replaced and can still be used and held in the future. The team may consider directly upgrading the tokens to create new stablecoins and new governance tokens. The name of the new coins will be announced along with the establishment of the new brand and website.

MakerDAO New Stablecoin

The new stablecoin will be a new ERC-20 wrapped token pegged to DAI, and it will have the following features:

  • The new treasury allocation system will directly allocate a large amount of new stablecoins and Dai collateral to provide liquidity for the new stablecoin on Uniswap and other major DEXs. The goal is to deploy enough assets to give the new stablecoin more on-chain liquidity than Dai upon launch.
  • Integration with the platform and protocols of the new stablecoin will receive rewards from the new stablecoin incentive system.
  • DAI holders can convert their holdings into the new stablecoin through wrapping and vice versa, with a 1:1 exchange ratio, no fees, and no limits on the amount.

Note: SubDAO refers to smaller, self-governing working groups or projects within a larger DAO.

MakerDAO New Governance Token

The new governance token will be a revalued version of MKR, with the following features:

  • MKR holders can convert their holdings into the new governance token through wrapping and vice versa, with a 1:1 exchange ratio of 1,200 MKR to the new governance token, no fees, and no limits on the amount.
  • After the start of the first phase, the new governance token will activate an intelligent burn engine that will accumulate LP tokens of the new stablecoin to the new governance token using protocol surplus over 50 million.
  • In the third phase, the new governance token will provide holders with an AI governance tool system that controls token usage rights, facilitating the summarization and verification of governance rules and processes, or generating new proposals in line with governance.
  • In the fourth phase, the new governance token will be able to participate in a locking system to receive 30% of protocol revenue as rewards in new stablecoins or SubDAO tokens.

After the introduction of the new mechanism, users in the United States using IP and VPN will be prohibited from mining and earning opportunities related to the new stablecoin and governance tokens.

Key Points of the Endgame Plan

In summary, Maker has set five-phase goals to make the Maker ecosystem more efficient. It will introduce a unified brand identity and six sub-autonomous organizations SubDAO. Users can participate in mining in each SubDAO, with each SubDAO token used to promote permissionless innovation and collateral asset allocation.

An AI governance tool has also been incorporated into Maker's plan to help general governance participants understand all the details and dynamics of the system. In addition, users will be encouraged to participate in governance through mining rewards. Finally, Endgame will launch a new blockchain closely integrated with Ethereum, fully realizing its functionality and token economy.

The key points of each phase are as follows:

Phase One: Establish a unified ecosystem brand, upgrade MKR and DAI tokens, and formally reject U.S. users.

Phase Two: Introduce six sub-autonomous organizations SubDAO and their token farm NewStable token farm. The missions of these SubDAOs include user growth and maintaining decentralized front-end. They are divided into two types: FacilitatorDAO and AllocatorDAO. FacilitatorDAO is responsible for governing processes and rules, rewarded based on performance. AllocatorDAO is responsible for distributing NewStable collateral, handling decisions, exploring innovative products, and growth strategies.

Phase Three: Introduce AI governance tools for modifying, enhancing, summarizing, and interpreting governance rules, principles, processes, and knowledge of the MakerDAO ecosystem.

Phase Four: Governance participation rewards. Launch the SLE system, where holders of the new governance token can lock and delegate voting to a delegate committee, receiving new stablecoins or SubDAO tokens.

Phase Five: Deploy a new blockchain. The network gas fee will use a savings-type new stablecoin that includes interest-bearing stablecoins, while governance will use the new governance token.