In late August, MakerDAO co-founder Rune Christensen proposed what he termed an ‘Endgame Plan’ to make the network more resilient to regulatory pressure.
Endgame is a path for Maker to deliver on the vision of creating an Unbiased World Currency, a resilient infrastructure for both the crypto ecosystem and the global economy.
The Endgame plan proposes to make DAI a free-floating asset, initially collateralized with real-world assets (RWA). There will be a three-year period when DAI remains pegged to the dollar, during which time the protocol doubles RWA to accumulate as much ETH as possible. This increases the proportion of decentralized collateral.
According to the analysis, DAI has little chance of it being fixed at $1 while reducing the concentration of collateral risk.
MakerDAO wants to be resilient by reducing the exposure to centralized collateral, as they are directly seeable by the regulators. The only way to guarantee a limit on this exposure is to allow DAI to free float, and introduce a negative Target Rate.
The analysis also shows the current collateral status of DAI. USDC is supporting more than 50% of the $DAI supply.
Specific content includes:
On the DAI free float proposal: “Free-floating DAI can be a very hard reality to accept, but there is, unfortunately, no way around it.”
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