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

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

In a prolonged Oct. 5 submit revealed to the MakerDAO governance discussion board, Christensen asserts that MakerDAO ought to try to make sure that all of its collateral contains “sustainable and climate-aligned belongings that contemplate the long-term impacts of monetary exercise on the atmosphere.”

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

“As we speak we have already got the whole lot we have to start scaling our RWA publicity to lots of 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 neighborhood developed over a few years.”

Associated: MakerDAO to dissolve Basis and develop into actually decentralized once more

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 token. 

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

Maker’s founder emphasised the improved environmental effectivity anticipated to be achieved by Ethereum’s transition to Proof-of-Stake consensus with Eth2, stating:

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