Connect with us


MakerDAO founder hints decentralized stablecoins’ potential dominance in crypto



Rune Christensen, the founder of MakerDAO, recently expressed his belief that well-defined regulatory frameworks will enable stablecoins to achieve mainstream adoption. However, he noted that decentralized stablecoins offer greater potential than centralized alternatives.

According to Rune Christensen, the co-founder of MakerDAO, decentralized stablecoins have the potential to become the dominant stablecoin option in the future. However, he believes that the success of decentralized stablecoins depends on the crypto industry fulfilling its potential.

In an interview with Cointelegraph’s Andrew Fenton at Token 2049, Rune Christensen discussed the potential of decentralized stablecoins such as Dai and their role in the future of the crypto economy.

In a discussion between Christensen and Fenton, the two touched on a presentation by Nic Carter, a partner at Castle Island Ventures, at the same conference. Carter had predicted that interest-bearing stablecoins, like Dai, could potentially constitute up to 30% of the stablecoin market within just two years, pending certain market conditions.

While Christensen agreed with Carter’s prediction, he noted that the macroeconomic environment would likely influence it. He added that if high inflation and high rates continue, there is a higher likelihood that stablecoin dominance will grow.

When asked about the competitiveness of decentralized stablecoins against their centralized counterparts, Christensen responded clearly and to the point:

“Easily I mean, I think if the space ends up living up to its potential, then decentralized stablecoins will be the entire market like centralized stablecoins would be the edges that connect us to like the legacy system.”

While acknowledging that centralized stablecoins may become more mainstream in the future as crypto becomes more regulated, Christensen maintained that decentralized stablecoins have greater potential in the long run. He explained that the mainstream adoption of cryptocurrencies, driven by the fulfillment of their potential, could naturally propel decentralized stablecoins into broader use. He suggested:

“I think the real killer advantage of decentralized stablecoins, run by actual data like Maker, is this ability to gamify your savings.”

In mid-2022, MakerDAO’s “Endgame Plan,” drafted by Rune Christensen, proposed making DAI a free-floating asset. Initially, the asset would collateralize real-world assets (RWA).

According to the plan, there will be a three-year period during which the DAI stablecoin will continue to peg to the US dollar. During this time, the protocol will focus on increasing the amount of real-world assets (RWA) backing the stablecoin. The goal is to increase the percentage of decentralized collateral, primarily ETH.

However,  he believes that MakerDAO has laid a solid and stable foundation but has been overshadowed by illegitimate and scammy projects.

Christensen advocates for a more gamified user experience to make the protocol more appealing to younger users. “It’s what people want,” he said before suggesting that the protocol should be designed to emulate popular video games, often characterized by engaging and intuitive interfaces.

Read also:

Xeenon, a web3 streaming platform, to shut down

Mina becomes the first non-EVM protocol  on MetaMask Snaps


0 0 votes
Article Rating
Click to comment
0 0 votes
Article Rating
Notify of

Inline Feedbacks
View all comments

Crypto News Update

Latest Episode on Inside Blockchain

Crypto Street



ALL Sections

Recent Posts

Would love your thoughts, please comment.x