Compiled by: LianGuai0xxue
The Token 2049, a major event in the encryption industry, opened on September 13, 2023. LianGuai provided live coverage of the conference.
On the morning of September 14th, Rune Christensen, co-founder of MakerDAO, gave a speech on the topic of “MakerDAO Endgame”. LianGuai has compiled the content of Rune Christensen’s speech below, along with the presentation slides.
The following is the content of the speech:
- Judge allows FTX to sell its cryptocurrency assets including BTC and SOL.
- The Future Battle of Ethereum Layer 2 Variety of Blossoms or Sole Excellence?
- Milady stages a ‘power struggle drama’ internal fight for control over the project, millions of dollars of funds misappropriated.
I’m here to briefly introduce the most significant things that have happened in the cryptocurrency field over the long term. This is a great game. So before we delve into it, let’s first talk about why we are here?
Focusing on practical delivery, real value, and the full potential of technology
We are here because we believe that blockchain can do a lot for the world, helping to fix the financial system and improve lives around the world.
The problem is, not everyone is here for the same reasons. In the past, many people saw this field as a Ponzi scheme, and many people were only interested in making quick money and didn’t really care about the potential of the technology itself.
This has affected the reputation of the industry.
But the good news is, there have always been projects that are doing real things. While everyone else is busy getting rich and doing things that have no value, we have consistently aimed to provide real value. This has ultimately led to tremendous growth.
In our smart contract system, people from all over the world collaborate to manage the largest decentralized stablecoin, Dai. In fact, Dai has reached a circulation of over $5.2 billion in the past two months, an increase of nearly $1 billion. Dai generates over $170 million in profit per year and continues to grow.
When the industry returns, we hope to focus not only on token prices and speculation but also on practical delivery, real value, real growth, and the full potential of technology. However, to achieve this goal, we will have to achieve Maker’s ultimate goal and rethink many of its core elements in order to fully tap into this potential.
Maker DAO launches four “subDAOs”
First, we will make relatively small improvements that symbolize the beginning of a new era for this project. We will introduce a new brand to attract more people to participate and make it easier for people to start using stablecoins. At the same time, it is also to help user groups and the ecosystem achieve better governance.
What we really need to solve are governance and scalability issues. Maker has achieved so much success that we have reached a point where it becomes too large and difficult to control before it has too much actual value in Maker DAO. It’s quite difficult for the general public to participate in major governance decisions.
We are entering a new paradigm called “subDAO”. We hope to focus on specific products and specific markets, and be able to self-organize into unique communities with the desired culture to do what they want to do. We hope to achieve this goal through the launch of “subDAO”. Initially, four “subDAOs” will be launched, and more will follow, each with its own token. These tokens actually represent all the untapped value and potential in Maker, which will be distributed to users. The only thing you need to do to get these tokens for free is to upgrade your Dai to the new system version. If you do so, you will have the opportunity to get these “subDAO” tokens.
There are many opportunities in the entire crypto ecosystem to discover all the value and potential that Maker has built. One of the truly unique aspects of Maker is its compactness and flexibility to make decisions quickly. They have also leveraged the massive scale and enormous potential accumulated in the ecosystem over the past 8 years. As these “subDAOs” interact with each other, this potential will only continue to grow. They will have access to shared economies of scale, a large portfolio of collateral assets for the Dai stablecoin, user communities, and the trust and track record brought by the Maker brand. They will also share governance, infrastructure, and even future AI tools. Although they are small and flexible entities themselves, they will be able to develop and build on each other.
Now, one of the most difficult things is dealing with team members. It is very difficult for them to cut costs in the budget for recruiting project members and choosing project members. This is actually a very tricky thing. So the strength of “subDAO” is that they can basically complete all popular work for free, because from the moment they start, they have full access to the complete Maker community ecosystem. We have built this ecosystem over the past 8 years. We have some top-notch Maker developers who are outstanding contributors to the entire industry. And this will continue to grow. So as a “subDAO”, you don’t have to worry about all the complex and difficult things. As a newly formed community, you can focus on enjoying the fun, deciding what “subDAO” wants to do, deciding where you want to make an impact, and then deciding how much you are willing to contribute to complete these tasks.
Then, the ecosystem will ensure that top-quality contributors are available to complete the tasks you want to complete at a reasonable price. I emphasize again how unusual this is, as it is usually a problem that most projects encounter. Now, everything is ready.
As I mentioned before, “subDAO” is generated by creating “utopians” and then distributing them to holders of the upgraded version of Dai. These holders receive “subDAO” tokens and are the only holders of the genesis allocation. This is the true fair launch of “subDAO”.
Once subDAO is launched, an important question is that the holders of these new tokens must decide the direction of “subDAO”. Because we don’t just want to launch a bunch of tokens and then put people into a completely blank, idea-less, directionless scenario. For the initial “subDAO”, we have been incubating some very high-quality companies, called “nested teams”, which basically have very impressive starting points.
Let’s discuss in detail the complete initial “subDAO” and how they will explore different dimensions of what can be done in this new paradigm. So each “subDAO” must focus on community building and truly develop an impressive community because community, culture, and brand are the foundation that enables them to function properly.
If you have a well-functioning community, you can provide them with powerful DeFi technology. This is exactly what Maker excels at in the early days. These technologies can be used to move towards the real world, interact with institutions, and engage in real asset trading. This is what we see, the real economic scale, the real potential is here, related to DeFi. I will briefly introduce each “subDAO” one by one.
First is “SakuraDAO”, which aims to create something very easy to understand and not do too much with complex DeFi. It focuses on sustainable income, sustainable economy, and uses them to develop content, such as games, and provide value. What it really cares about is not money, not complex finance, but more about enjoying fun in the DAO and seeing what possibilities this paradigm has.
Next is “SLianGuairkDAO”. It focuses on cutting-edge DeFi innovation. The SLianGuairk protocol already has an actual product in operation. In fact, the SLianGuairk protocol has become one of the top 25 DeFi projects in the world, with a total locked value of nearly 50 billion US dollars, and it is still growing. “SLianGuairkDAO” will have the ability to continue driving this innovation and growth, and launch more innovations. “SLianGuairkDAO” hopes to always be at the forefront of all DeFi innovations and build landing products that people are willing to use.
The third is “QuantDAO”. First of all, it is important to realize that “QuantDAO” is just a code name, and the key is to focus on the intersection of technology and finance, and to think about the possibilities that arise when technology, finance, and high-scale, high-speed, high-frequency tokenized trading, actual asset allocation, market makers, etc. combine.
The fourth is “QualDAO”. One unique value proposition of “QualDAO” is actual asset structuring. In fact, this is the largest actual asset structure in the world, which has already injected over 1 billion US dollars into the treasury.
In summary, MakeDAO will have four subDAOs: Sakura, SLianGuairk, Quant, and Qual. Sakura is a subDAO for the community; SLianGuairk is a DeFi subDAO for the latest technology; Quant and Qual are subDAOs for finance and institutions, with Quant focusing on the intersection of technology and finance, including expanding RWA, market making, and large-scale high-speed tokenized trading, while Qual targets specific finance (such as private credit and its tokenization) and the China, India, and Southeast Asia regions.
Most importantly, this is a very powerful and scalable structure that can provide a foundation for all future real asset projects to quickly get started. Again, it is emphasized that this is only a temporary code name and will be changed. So its core is deeply specialized in the financial field. It’s not just about large-scale credit, but also includes private credit. If you make the right choices and have the right expertise, these transactions can potentially bring better returns.
Currently, we are betting on truly outstanding private credit transactions, which truly demonstrate the potential of “subDAO” and token models.
We hope to develop this product in more places and design it for localization to maximize its potential.
“QualDAO” will also be associated with a structured entity called “Andromeda,” which is the second largest real asset structure in Maker and has injected nearly $1 billion in real assets. It is very powerful and ready to further expand to meet the needs of “QualDAO”.
All “subDAOs” are designed to reduce barriers to participation. One key driving factor will be staking, where stakers can choose to get more involved, effectively becoming the decision-makers and driving forces behind the progress of the “subDAO”.
One thing we have learned in the past 8 years in Maker is that DAOs cannot succeed if they are solely about money. There must be something more attractive and profound to unite the community. That’s why we have developed what we call the “Purpose System.” Essentially, it means that every subDAO and Maker must commit to funding public goods, not just doing money-making activities. It has been proven that by doing so, you will attract more talented people to join the subDAO. You will maintain the internal cohesion of the subDAO and ultimately enable them to create greater value.
What remains is participation. Everyone should participate, join the discussions, join the Maker forum, and learn more about the “subDAOs”. In early next year, we will launch a new brand and a new token, so you can upgrade to Dai.
Finally, around the second quarter of next year, if everything is ready, these “subDAOs” will be launched. As I mentioned, this will be a significant event in the crypto space. So when they launch, if you want to get involved from the ground up, you need to figure out which “subDAO” is right for you, which community suits you, and where you can provide value. And in return, benefit from the growth of token value and community value.
Thank you all for listening.
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