Maker Aims for a $100 Billion Stablecoin

The evolution of cryptocurrency is a fascinating journey, interwoven with innovation, ambition, and controversyAmong the key players in the industry, MakerDAO has stood out due to its unique approach to stablecoinsWhen Rune Christensen, one of the co-founders of Maker, embarked on a transformative journey for the Maker protocol, he brought forth a vision that aimed to redefine the stablecoin landscapeThis initiative, dubbed "Endgame," is not just a rebranding exercise; it's an audacious attempt to shift the paradigm and democratize the cryptocurrency experience for everyday users.

At its core, stablecoins are digital representations pegged to a stable asset—often the US dollarThey serve as a bridge between the volatility often seen in cryptocurrencies and the stability needed for practical transactionsMaker's stablecoin, DAI, presents a decentralized alternative to established players like Tether (USDT) and USD Coin (USDC), which can be subjected to centralised control, such as freezing or seizing funds

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As such, DAI embodies a vision of a democratic, decentralized financial system that many hope can bring cryptocurrency into the mainstream.

However, despite the burgeoning market for stablecoins, where financial giants are racing to develop their own dollar-pegged tokens, DAI struggled to maintain momentumWith a supply of approximately 5 billion DAI, emerging competitors continued to chip away at its market shareMeanwhile, the well-established stablecoins like Tether and Circle were consolidating their dominance, further complicating the landscape for MakerDAO.

Christensen's "Endgame" proposal, which was initially introduced in 2022, aims to revitalize and expand the Maker protocol by embarking on an ambitious journey that encompasses extensive changes including a rebranding effort, new tokens, innovative earning mechanisms, the introduction of subDAOs, and leveraging artificial intelligence

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The ultimate goal is to captivate a broader audience and position Maker's new stablecoin as a go-to option for users.

One striking aspect of this plan is Christensen's aspiration to increase the supply of DAI to an impressive "100 billion or above," edging closer to Tether's market cap of 114 billionSuch a lofty ambition undoubtedly reflects an understanding of the competitive pressures facing MakerChristensen emphasizes the need to tap into a demographic that extends beyond the current crypto-savvy audience, suggesting a vision that includes everyday consumers by simplifying access to decentralized finance (DeFi) tools.

Nevertheless, real results need to materialize for the ambitious plans to bear fruitMany companies in the DeFi space have made bold claims to "attract the next billion users," yet only a handful have managed to serve even a fraction of that audience effectively

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In contrast, many initial lessons learned from the DeFi revolution suggest that user acquisition and retention often hinge on practical use cases and genuine engagement.

One particular point of contention within the Maker community revolves around Christensen's influential roleCritics have raised concerns about whether his drive for change is genuinely in the best interest of the broader MakerDAO communityAs adjustments to plans and proposals have been met with mixed reactions in the past—including contentious voting moments—many community members have scrutinized the potential for self-serving behavior amidst the changes.

Mark Phillips, a co-founder of the crypto consulting firm Steakhouse Financial, echoes a common sentiment: the average person is not engaged with Maker or its technologyThe hope that "Endgame" could change this reality reflects a desire to bridge the gap between the complex world of cryptocurrencies and the everyday user experience.

The initial phase of the "Endgame" rollout involves unveiling a complete rebranding of Maker, complete with a new stablecoin and governance token

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Accompanying this launch will be an intuitive mobile application designed to enhance user experience and accessibilityImportantly, new features such as yield farming will enable users to upgrade their DAI and MKR into upgraded tokens—referred to as "NewStable" and "NewGovToken". This approach will allow users the opportunity to earn interest either through existing savings rates or by participating in governance, tapping into a sense of community ownership.

The commitment to loyalty is on full display too, as longtime participants in the Maker ecosystem can receive greater rewards by locking in their MKR or new governance tokensAccording to Christensen, this integration of long-term value creation is essential in attracting a more diverse group of participants, addressing a historical issue where large holders—or "whales"—held significant sway over governance decisions

Phillips remarks that incentive structures are a critical part of drawing more users into governance processes, as many in the wider cryptocurrency sphere feel disconnected from the decision-making stages.

The venture into artificial intelligence represents an additional pillar of the "Endgame" strategyThe introduction of Maker's first subDAO is envisioned to streamline management within the Maker cooperativeInspired by the lending protocol Spark, led by Sam McPherson, this initiative seeks to alleviate the burdens that volunteers often face due to cumbersome bureaucratic processesBy decentralizing some operational features to sub-organizations, it’s anticipated that DAO members can focus more on growth-oriented initiatives rather than getting bogged down in operational details.

Despite ambitions of launching multiple subDAOs, the strategy faced some setbacks, leading to a singular focus on the Spark initiative for now

Christensen's initial hopes for simultaneous releases of multiple subDAOs were tempered by the complexity of integrating AI effectively within the Maker governance frameworkHowever, the aspiration is for AI to aid in deciphering discussions within MakerDAO forums, enhancing participation by simplifying complex discussions for average membersMcPherson mentioned that AI has the potential to provide insightful analysis, helping users grasp contributions and progress in a more digestible manner.

While the promise of AI is intriguing, the timeline for its practical application in the Maker ecosystem remains uncertainCurrently, Christensen acknowledges the technology's limitations, expressing a cautious optimism about its reliability in governance situationsThis highlights an essential fact: technology offers promising opportunities but often requires careful planning and execution to avoid unnecessary pitfalls.

Amidst these challenges, Christensen remains steadfast in his belief that through cohesive branding and incentivization via tokens, Maker can achieve widespread adoption