MakerDAO has announced a plan to upgrade its entire ecosystem. The process code named Endgame is designed to enhance efficiency, resilience, and participation in MakerDAO. It will create a strong balance of governance that enables permissionless growth of SubDAOs and make product development easier.
MakerDAO is a decentralized autonomous organization (DAO) — the issuer of the DAI stablecoin. DAI is backed by a basket of assets, including Ether, USDC, and other cryptocurrencies. MakerDAO uses a system of smart contracts to manage the creation and redemption of DAI.
The short-term objective of Endgame is to grow to the largest and most widely used stablecoin project within 3 years. This post provides an overview of the roadmap and the comprehensive changes that Endgame will bring to Maker in the 5 successive launch phases.
Phase 1: Beta Launch
This phase will focus on rebranding the entire ecosystem to have a unified brand. Maker and Dai have established brands in the cryptocurrency space but have drawbacks such as two separate brands.
The Endgame transition is seen as the ideal time to fix this fundamental issue with a full rebrand and new website. Dai and MKR will not be altered but will be upgraded to their new versions, NewStable and NewGovToken.
Phase 2: SubDAO Launch
In this phase, SubDAOs will be created within MakerDAO, allowing rapid parallelized growth, specialization, and decision-making. They will be split into two classes: FacilitatorDAOs and AllocatorDAOs.
FacilitatorDAOs will specialize in operating the DAOs governance processes and rulesets, while AllocatorDAOs will specialize in allocating NewStable collateral, handling marginal decision-making and operational efficiency, and experimenting with innovative products and growth strategies.
Phase 3: Governance AI Tools Launch
At Phase 3, the Maker ecosystem will be focused on launching its AI tools for governance monitoring and improvement. The AI tools will help level the playing field between deeply embedded insiders and more peripheral community members by making it possible for anyone to participate at a very high level with all relevant facts and nuances available.
Phase 4: Governance Participation Incentive Launch
According to the report, the launch of the Sagittarius Lockstake Engine (SLE) will be the next stage after the launch of the governance AI tool in the previous stage. One of the purposes of the SLE is to incentivize token holders to participate deeply in governance by locking up their tokens and delegating their voting power to an Aligned Governance Strategy.
Furthermore, MakerDAO said that while users will also be rewarded – with the NewStable income (30% of Protocol surplus) or SubDAO tokens (30% of SubDAO token distribution), SLE will impose a 15% exit fee, which is burned from the locked tokens when a user exits.
Phase 5: NewChain Launch and final Endgame State
MakerDAO also revealed that the launch of NewChain is the last step in the Endgame launch process, and once it is deployed, MakerDAO will permanently enter the Endgame State.
NewChain will be a blockchain that houses all backend logic for SubDAO tokenomics and MakerDAO governance security. It will have the ability to use hard forks as a governance mechanism to recover from catastrophic governance disputes.
It will also have extra features that optimize it as a backend for AI-assisted DAO governance processes and AI tool users, such as smart contract generation, state rent, and in-protocol MEV capture.
The native token for gas fees and state rent will be Savings-NewStable, and consensus staking will be with NewGovToken through the Sagittarius Lockstake Engine.