MakerDAO, the issuer of the DAI stablecoin, will integrate the AI tools in its next update, called Endgame. The DeFi protocol update was announced at MakerDAO official forum. The intent is to open a discussion in the community about its development.
The impact of the new update on the DAI stablecoin could be as big as the first major update, known as DAI MCD. It should be remembered that DAI was a one-sided asset in its early days, as each DAI was created with collateral based solely on Ethereum. Ethereum price stability problems led to the creation of DAI MCD or DAI Multicollateral. Since then, the evolution of DAI in the field of decentralized finance has been phenomenal. Rune Christensen, creator of DAI and MakerDAO, believes that the new update will add security and decentralization to his creations.
Endgame maker
The MakerDAO Endgame Update is designed to improve efficiency, flexibility, and engagement. By applying AI tools tuned to open and scalable processes, Endgame will create a strong balance of governance that will enable the unauthorized growth of SubDAOs. As well as developing parallel products in an emerging ecosystem and guidance from the community.
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Endgame aims to become the largest and most used stablecoin project within three years. It also wants to ensure growth anchored in a vibrant and independent CAD economy, so that it can continue to accelerate without jeopardizing the balance of flexible governance.
MakerDAO Endgame will be developed in 5 different phases, which will allow the development team to create rules for the evolution of the platform. Each phase focuses on building a series of functions on which the new DAI and MakerDAO tokens will be built, as well as the entire governance and backend (the infrastructure that allows MakerDAO and DAI to function).
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The five development phases of the MakerDAO Endgame are a complete restructuring of the Maker protocol. All five are focused on improving MakerDAO’s capabilities to continue to maintain a relevant role in decentralized finance (Defi). MakerDAO is the second largest DeFi entity today with a market cap of over $6.9 billion.
Phase 1: Beta launch
The first phase of Endgmae is focused on building and testing new versions of DAI and the MKR management code. These new tokens will be called NewStable and NewGovToken. The final names of these tokens will be announced later. NewStable will be a new ERC-20 wrapper for the DAI stablecoin. NewGovToken will be a rebranded version of the MKR with a larger supply. The idea is to improve the stablecoin generation tools and governance rewards within the MakerDAO protocol.
Phase 2: Release of SubDAO
One of the biggest updates to Endgame is the ability to spawn SubDAOs. SubDAO will act as specialized divisions within MakerDAO. SubDAOs allow you to create your own governance processes, allowing for rapid growth, specialization, and parallel decision making. The goal is to delegate the day-to-day complexities to subsidiary subsidiary organizations, thereby simplifying the workload and complexity that Maker Governance must manage.
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The main tasks of SubDAOs include acquiring users and maintaining decentralized interfaces. Moreover, SubDAOs will also be divided into two categories: FacilitatorDAO and AllocatorDAO. DAO Facilitators will specialize in running DAO governance processes and rule sets, according to your specifications. They will be paid for their good performance and will be penalized if the rules they are responsible for are broken or not applied properly.
AllocatorDAOs will specialize in Newstable collateral allocation, driving margin decision-making, operational efficiencies, innovative product experimentation, and growth strategies. In the SubDAO release phase, four AllocatorDAOs will be launched directly, with their configuration tokens distributed through NewStable farms.
Phase 3: Integration of AI into MakerDAO governance
After the release of SubDAOs, the Maker Ecosystem will begin ramping up its production level AI tools to monitor and improve governance. Governance AI tools are constantly improving alignment elements, transforming them into a powerful “ecosystem intelligence” system. You will systematically collect knowledge, experience, examples and data, and save it in an optimized data structure for later use. This allows a DAO to learn from experience and continually improve its processes and decisions over time, without the need for a central leadership or authority.
The fourth stage: launching incentives for participation in governance
With the arrival of AI and the new token model in MakerDAO, Phase 4 will focus on creating a new incentive system for governance. This system is called the Sagittarius Lockstake Engine (SLE) and will be responsible for incentivizing NewGovToken holders to participate in governance. It will do this by locking up your NewGovTokens and delegating your voting power to a coordinated governance strategy held by AVCs (described above).
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This type of sharing will be implemented through a user-friendly interactive interface for easy access. In fact, it can be compared to the process of selecting a political party in a multi-party democracy. This will be possible thanks to the fact that voting power weighted by token holdings will be more distributed.
As a reward for their work to improve and secure the governance process, SLE users will receive revenue from NewStable (30% of protocol surplus) or SubDAO tokens (30% of SubDAO token distribution, initially 15 million tokens annually by SubDAO).
Phase 5: Launching NewChain
After launching the Sagittarius Lockstake Engine, the last step is to implement NewChain (its actual name will depend on the new brand). The launch of NewChain will be the final step in the Endgame launch process. Once executed, MakerDAO will permanently enter an end-game state.
NewChain will be a blockchain incorporating all the back-end logic of SubDAO tokenomics and the governance security of MakerDAO. This means that on Ethereum, NewStable and NewGovToken, as well as Dai and Maker, will continue to operate as normal, the only change being that they will be protected by a government backend running via the latest technology and a secure bridge. .
The focus of the MakerDAO and SubDAO ecosystem will continue to be the Ethereum and Ethereum L2 ecosystems, where users and compatibility reside. NewChain will be designed around this reality.
A new MakerDAO for the future
The arrival of SubDAOs, the birth of new versions of DAI and Makers, as well as the arrival of their own blockchain for SubDAOs and governance tasks confirm Christensen’s goal: to make MakerDAO as decentralized and secure as possible.
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