MakerDAO Launching 5-Phase Roadmap for New Stablecoin and Governance Token
On May 11, the decentralized lending platform MakerDAO issued an official publication revealing the company’s proposed plan “5-Phase Roadmap.” The MakerDAO team plans to launch a new stablecoin and unique governance digital token.
A subsequent report from the founder of MakerDAO, Rune Christensen, stated that the company would prioritize reorganizing the lending platform. Christensen added that the developers of stablecoin DAI and the governance token MKR would include additional features to the digital assets in the coming days.
Scope of MakerDAO 5-Phase Roadmap
Additionally, the MakerDAO team plans to launch a new brand and website that will support the efficiency of the lending platform. In his address, Christensen announced that the company would invest heavily in integrating artificial intelligence (AI) technologies into the governance tool.
He confessed that the expected change of the MakerDAO platform aligns with the company restructuring efforts dubbed “Endgame.” The main objective of the Endgame project is to enable the new digital assets to become the largest stablecoin with a high trading volume in three years.
Christensen opined that the MakerDAO restructuring model’s main objective is improving the lending platform’s performance. Also, the MakerDAO developers aim to create applications that bolster the operation of DAI stablecoin.
Over the past, the company’s governance tools have been the subject of heightened criticism due to company plans to boost the platform’s decentralization features. Furthermore, the attempt to incorporate censorship resistance in the protocol created heated social exchanges among the key stakeholders.
Importance of MakerDAO Restructuring Efforts
In October 2022, the MakerDAO community approved the Endgame project, dividing the company’s decentralized autonomous organization (DAO) into smaller groups called the SubDAOs. The subcategories will incorporate self-owned governance, sustainable tools and digital tokens operating on the MakerDAO ecosystem.In addition, the SubDAO will act as a barrier between the facilitator and allocator of the DAO.
The SubDAO plays a crucial role in streamlining the Maker Governance’s heavy workload and complex features. At the community call, Christensen argued that MakerDAO has massive losses due to poor branding strategies that limited growth.
According to Coingecko, the DAI stablecoin established a downward trend losing over $10 billion in 10 years. Christensen announced that the DAI’s huge losses subjected the company to make drastic moves to boost its market performance.
5-Phase Roadmap Stages
At the initial stage of the Endgame, Christensen explained that the MakerDAO team would focus on developing new stablecoin and governance tools. Also, in the first phase of the Endgame project, the developers will completely rebrand the MakerDAO products.
From his statement, the proposed stablecoin will exhibit similar features to DAI and Maker. However, the new stablecoin will have well-structured incentives for protocols that easily integrate with the digital token.
Christensen mentioned that the expected governance token will be supplied in large quantities compared to MKR. The MakerDAO team plans to circulate the governance token at the ratio of 1200:1 against the MKR.
Nonetheless, the governance token will support Makers AI-powered tools to provide the users with well-detailed governance rules. As such, the changes will enable the user to access information on the platform that is easy to comprehend before proceeding to verify governance rules.
Will the 5-Phase Proposal Boost DAI Perfomance?
In the third phase of the Endgame project, the company plans to create additional AI-based tools to support the execution of governance tasks on the internal system. Per the proposal, the MakerDAO team will introduce “the purpose fund” project, which will include the development of open-source AI tools.
This development will support the community in funding open-source AI projects that have the enormous capacity to improve the quality of life.
The May 11 publication illustrated that the changes in the MakerDAO protocol would have minimal impact on the DAI stablecoin and MKR token. Subsequently, the token holders can boost their new assets holding at zero fees.
With the endless merits of the new tokens, the user will be able to reap exceptional rewards from the yield farming platform. The features on the yield farm will restrict US users and VPN customers from exploring the reward platform.
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