Rune Christensen, the creator of MakerDAO, wrote an essay describing steps to follow. In order to make the protocol a vehicle for combating climate change.
MakerDAO’s collateral, he says, should be usable to fund long-term investments.
In a long article to the MakerDAO governance forum on Oct. 5, Christensen argues that MakerDAO should try to ensure that all of its collateral is made up of “sustainable and climate-aligned assets. That take into account the long-term implications of financial activities on the environment.”
The founder’s plan to preserve the planet
According to Christensen, the protocol’s collateral should focus on sustainable real-world assets (RWAs). Such as solar farms, wind generators, batteries, recharging stations, and other cost-effective renewable energy solutions. As well as their supply chains, sustainable resource extraction, and recycling. He went on to say:
“By using the trustee-based model of real-world assets that the community established over many years, we now have everything we need. In order to begin increasing our RWA exposure to hundreds of billions of dollars or even beyond. Securely and in complete compliance with financial legislation”.
MakerDAO will disband the Foundation and revert to its original decentralized state
Christensen also emphasises the necessity for MakerDAO to reaffirm its commitment to decentralised collateral, recommending that the protocol switch back to the Ethereum network and the Ether token.
MakerDAO members contribute crypto assets to the protocol in order to secure the Dai (DAI) stablecoin’s minting. Initially, the protocol only supported Ether, but it has subsequently grown to include other assets such as USD Coin, Wrapped Bitcoin, and Basic Attention Token.
Maker’s creator stressed Ethereum’s shift to Proof-of-Stake consensus with Eth2. He added, “Once the upgrade from proof of work to proof of stake accomplished, Ethereum will become a very energy-efficient blockchain”. “ETH will establish itself as a viable alternative to Bitcoin’s current status as the leading cryptocurrency”.