MakerDAO founder’s plans to address climate change and pivot back to ETH

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MakerDAO founder Rune Christensen has revealed an essay outlining measures that may very well be taken to make the protocol a car for addressing local weather change.

In a prolonged Tuesday submit published to the MakerDAO governance discussion board, Christensen asserts that MakerDAO ought to attempt to make sure that all of its collateral contains “sustainable and climate-aligned belongings that contemplate the long-term impacts of economic exercise on the atmosphere.”

Christensen asserts that the protocol’s collateral ought to be invested into sustainable real-world assets (RWAs) via senior credit score positions in tasks that construct “photo voltaic farms, wind generators, batteries, recharging stations and different cost-efficient renewable vitality options, in addition to their provide chains, sustainable useful resource extraction and recycling.” He additional acknowledged:

“As we speak we have already got every little thing we have to start scaling our RWA publicity to a whole lot of billions of USD and past, securely and in full compliance with monetary regulation, through the use of the trustee-based mannequin of real-world belongings that the group developed over a few years.”

Associated: MakerDAO to dissolve Foundation and become truly decentralized again

Christensen additionally expresses the necessity for MakerDAO to reestablish its dedication to decentralized collateral, advocating that the protocol return to counting on the Ethereum community and Ether (ETH) token. 

MakerDAO customers deposit crypto belongings into the protocol to collateralize the minting of the Dai (DAI) stablecoin. Whereas the protocol initially supported Ether solely, it has since expanded to assist different belongings together with USD Coin (USDC), Wrapped Bitcoin, and Primary Consideration Token.

MakerDAO’s founder emphasised the improved environmental effectivity anticipated from Ethereum’s transition to a proof-of-stake consensus with Eth2, stating:

“As soon as the improve from proof of labor to proof of stake is accomplished, Ethereum will change into a extremely energy-efficient blockchain. ETH will change into a sustainable contender to Bitcoin’s present position as the first cryptocurrency.”