Climate change

MakerDAO Founder’s Plans to Fight Climate Change and Return to ETH

MakerDAO founder Rune Christensen published an essay outlining steps that could be taken to make the protocol a vehicle for tackling climate change.

In a lengthy article published Oct. 5 on the MakerDAO Governance Forum, Christensen asserts that MakerDAO should strive to ensure that all of its guarantees include “sustainable, climate-aligned assets that take into account the long-term impacts of financial activity on the environment ”.

Christensen says the protocol collateral should be invested in real-world sustainable assets (RWAs) through senior credit positions in projects that build “solar farms, wind turbines, batteries, recharging stations and ‘other cost-effective renewable energy solutions, along with their supply chains, sustainable resource extraction and recycling. He further stated:

“Today we already have everything we need to start expanding our RWA exposure to hundreds of billions of US dollars and beyond, safely and in full compliance with financial regulations, using the model. of real-world assets based on the fiduciary that the community has developed over many years. “

Related: MakerDAO To Dissolve Foundation And Become Truly Decentralized Again

Christensen also expresses the need for MakerDAO to restore its commitment to a decentralized guarantee, advocating that the protocol again relies on the Ethereum network and the Ether token.

MakerDAO users deposit crypto assets into the protocol to secure the minting of the Dai stablecoin (DAI). While Ether was initially exclusively supported by the protocol, it has since expanded to support other assets, including USD Coin, Wrapped Bitcoin, and Basic Attention Token.

The Maker founder highlighted the improvement in environmental efficiency expected to be achieved through Ethereum’s transition to a proof-of-stake consensus with Eth2, saying:

“Once the upgrade from proof of work to proof of stake is completed, Ethereum will become a high energy efficiency blockchain. ETH will become a lasting competitor to Bitcoin’s current role as the leading cryptocurrency. “


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