Founder of MakerDAO Intends to Reduce Emissions and Return to ETH

Kavya  |  Oct 8, 2021

MakerDAO founder Rune Christensen has penned an essay detailing steps that might be made to turn the protocol into a vehicle to reduce emissions.

MakerDAO Founder Intends To Reduce Emissions

Christensen claims in a lengthy Tuesday post to the MakerDAO governance forum that MakerDAO should try to guarantee that all of its collateral consists of "sustainable and climate-aligned assets that address the long-term consequences of financial activities on the environment."

According to Christensen, the protocol's collateral should be invested in sustainable real-world assets (RWAs) through senior credit positions in projects that build "solar farms, wind turbines, batteries, recharging stations, and other cost-efficient renewable energy solutions, as well as their supply chains, sustainable resource extraction, and recycling." 

He continued, saying:

“Today we already have everything we need to begin scaling our RWA exposure to hundreds of billions of USD and beyond, securely and in full compliance with financial regulation, by using the trustee-based model of real-world assets that the community developed over many years.”

MakerDAO Will Abolish The Foundation And Revert To Its Original Decentralized State

Christensen further emphasizes the necessity for MakerDAO to reaffirm its commitment to decentralized collateral, arguing that the protocol should revert to depending on the Ethereum network and the Ether (ETH) token.

Users of the MakerDAO system deposit crypto-assets into the platform to fund the production of the Dai (DAI) stablecoin. 

While the protocol initially only allowed Ether, it has subsequently extended to include additional assets such as USD Coin (USDC), Wrapped Bitcoin, and Basic Attention Token.

The creator of MakerDAO underlined the increased environmental efficiency predicted from Ethereum's move to a proof-of-stake consensus with Eth2, stating:

“Once the upgrade from proof of work to proof of stake is completed, Ethereum will become a highly energy-efficient blockchain. ETH will become a sustainable contender to Bitcoin’s current role as the primary cryptocurrency.”

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