By Hassan Mehmood (Saudi Arabia)
MakerDAO is a decentralized stablecoin generating entity. The CEO of MakerDAO has announced an initiation to the Solana blockchain network. On this account, Ethereum co-founder Vitalik Buterin has liquidated his MakerDAO token reserves into Ethereum tokens.
He converted around 500 tokens to exchange it with 353 ETH. At the current market value the estimated value of ETH reserve converted is around $580K.
The change has been made on account of the changes happening among the top brass of MakerDAO management. Rune Christensen is the CEO and co-founder at MakerDAO who claimed that the organization is diverting towards Solana network.
The transition is still in transit, it would mean that the decentralized platform is shifting from Ethereum blockchain to Rust-based Solana network.
Christensen declared three main reasons for shifting towards the Solana blockchain. He maintained that Solana has an advanced technical architecture, the ecosystem is robust, and Solana protocols like Pyth Network remained successful despite the aftershock created by FTX decline.
He however did not talked about taking a departure from Ethereum network but talked about creating a pivotal bridge between Solana and Ethereum blockchains.
In this manner, the executive is aiming for a multichain expansion for MakerDAO token. The bridge in this scenario named NewChain is also considering Cosmos blockchain as an alternative blockchain network.
Also read:The stablecoin issued by MakerDAO namely Dai is the 3rd largest stablecoin in the world by market cap of $3.9 billion. It is second to the Tether or USDT stablecoin with a market cap of $82.9 billion. Buterin invested in MakerDAO in April with a purchase of 1071 MKR tokens valued at $905 per unit.
MakerDAO Co-Founder Shares New Proposal for Endgame Plan
MakerDAO has recently published a new proposal on Solana blockchain. The proposal is about a fork for the launch of the new blockchain for DeFi lending. This appchain is going to be built on Solana infrastructure. This new protocol has been dubbed as part of the Endgame plan.
The new direction for the stablecoin issuer is going to bring improve governance and make the environment more decentralized.
The Endgame plan consists of 5 phases. The final phase of this plan is going to release a new protocol called NewChain. NewChain is very important since it adds defense against any type of governance attacks and prevent technical failures.
Christensen maintained that Solana stack is most reliable codebase to build upon. The proposal has been put up for a vote at the MakerDAO community forum. He claimed that the NewChain will have two-staged Gravity bridges to Solana and Ethereum networks.
On the other hand, he claimed that the Cosmos network is more expensive in terms of maintenance overtime and lacks a strong centralized foundation.
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