MakerDAO founder Rune Christensen has revealed an essay outlining measures that could possibly be taken to make the protocol a automobile for addressing local weather change.
In a prolonged Tuesday submit published to the MakerDAO governance discussion board, Christensen asserts that MakerDAO ought to attempt to make sure that all of its collateral includes “sustainable and climate-aligned belongings that think about the long-term impacts of monetary exercise on the atmosphere.”
Christensen asserts that the protocol’s collateral ought to be invested into sustainable real-world assets (RWAs) by way of senior credit score positions in initiatives that construct “photo voltaic farms, wind generators, batteries, recharging stations and different cost-efficient renewable vitality options, in addition to their provide chains, sustainable useful resource extraction and recycling.” He additional acknowledged:
“At this time we have already got every part we have to start scaling our RWA publicity to tons of of billions of USD and past, securely and in full compliance with monetary regulation, by utilizing the trustee-based mannequin of real-world belongings that the neighborhood developed over a few years.”
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 (ETH) token.
MakerDAO customers deposit crypto belongings into the protocol to collateralize the minting of the Dai (DAI) stablecoin. Whereas the protocol initially supported Ether completely, it has since expanded to assist different belongings together with USD Coin (USDC), Wrapped Bitcoin, and Primary Consideration Token.
MakerDAO’s founder emphasised the improved environmental effectivity anticipated from Ethereum’s transition to a proof-of-stake consensus with Eth2, stating:
“As soon as the improve from proof of labor to proof of stake is accomplished, Ethereum will change into a extremely energy-efficient blockchain. ETH will change into a sustainable contender to Bitcoin’s present function as the first cryptocurrency.”