MakerDAO announces Launch Season of Endgame Plan

The MakerDAO project, the issuer of the third largest stablecoin, DAI is set to launch the Phase I of their Endgame Plan, shared on the official forum by their founder, Rune Christensen. The plan is an update that also employs AI tools aimed at enhancing sustainable user growth, resilience, and accessibility to scale the Dai from its current $4.5-billion market capitalization to $100 billion. 

Role of Endgame Plan

The idea for Endgame began nearly two years ago, and extensive preparations began only after it was approved by a governance vote in August 2022. This involved developing core technology, legal structures, and supplier networks to lay the foundation for the ecosystem’s limitless scalability divided into phases.  

The plan was launched with the primary objective of bringing scalability in the Maker Ecosystem where it will act as a central bank creating monetary policies for each of its SubDAO. Currently the team is in process of compiling all the documentation, rules and procedures which can be easily accessed by DAO members for consultation. The plan also aims to achieve full decentralization and autonomy of the project governance to address the hurdles faced earlier following the dissolution of the MakerDAO Foundation. In their upcoming plan, there will be a series of SubDAOs responsible for their respective projects  risking their own governance tokens for their own projects.

Runes said, “They’ve got each other’s back… They’re all gonna get screwed over if it goes wrong. So, they’re not gonna be about loyalty and politics. They’re gonna be about ‘We’ve got to do something that’s going to unleash the potential of blockchain.”

Upcoming Phase I – Launch Season

Phase 1, known as Launch Season, is slated for summer 2024 with the reveal of a new brand emphasizing the simplicity and accessibility of saving money with stablecoins. Post this, two new tokens will be introduced to the ecosystem, NewStable and NewGovToken (actual names to be shared at Brand Reveal) giving users an option to upgrade to these new tokens to access all of the new features that are coming to the ecosystem.

Next in their plan is the launch of Lockstake Engine (LSE) that incentivizes long-term governance participation by offering rewards for locking MKR and NewGovToken. Users are issued NewStable or SPK tokens for locking their tokens and can use these to earn passively via yield farming. However, users are required to pay a 15% exit fee when they unlock their LSE tokens.

Post LSE, they launch a NewBridge, connecting NewStable, NewGovTokens and other Maker Ecosystem tokens from Ethereum Mainnet to a major L2 (TBD). This comes at a time to take advantage of the recently launched Dencun Upgrade that makes L2 transactions cheaper. The most anticipated part of Phase I is the launch of the first SubDAO, Spark (forked from Aave) that focuses on providing innovative lending and DeFi products. 

Phase 2 – Scalability 

Phase II is primarily focused on scaling up all the launches during Phase I.  Around 6 SubDAOs will launch during Phase 2 – catering to different market segments, from RWA to gaming-focused SubDAOs. The idea is also to bring complete autonomy to all SubDAO which will be achieved gradually as communities grow to become more capable.

Phase 3 – NewChain

Finally, the last technical addition includes a NewChain which will be forked from a codebase from another suitable blockchain primarily to support the additional use products and ensure more efficient scalability of SubDAOs. However, the new chain will only be an extension but does not mean Maker is leaving Ethereum.

Phase 4 – Final Endgame

The Final Endgame signifies the completion of technical and governance structures in MakerDAO. Once activated, Maker Core’s governance mechanisms become immutable, fostering a reliable, ever-growing financial ecosystem.

Backlash from Community 

‘We all hate Rune, we think this is ridiculous’

A lot of people did not like the idea of the “Endgame Plan’, probably because it’s difficult to comprehend. One Redditor called it “Rune’s egomaniacal plan” and criticized the plan to set up subDAOs, each with their own tokens, as “turning Maker into a ponzi-tokenomics factory.”

Closing Thoughts

MakerDAO’s Endgame initiative presents a strategic pivot aimed at bolstering its market position and addressing previous operational challenges. The phased rollout signifies a calculated approach to enhance user experience, broaden product offerings, and stimulate adoption. In response to the post, $MKR is up 9% in 24 hours and this positive response indicates investor confidence in the proposed changes. However, critical scrutiny remains warranted, particularly regarding governance transparency and long-term sustainability amidst evolving regulatory landscapes. MakerDAO’s ability to navigate these complexities while delivering tangible value will be pivotal in determining its investment appeal and long-term viability in the decentralized finance sector.