Maker Governance: Multi-Collateral Dai
This week, MakerDAO’s MKR token holders will cast a vote to determine the parameters of MakerDAO’s most ambitious upgrade yet. MakerDAO’s first stablecoin, which is backed only by Ethereum, will be replaced by Multi-Collateral Dai, which will be collateralized by multiple assets. At launch, these assets will be Ethereum and Basic Attention Token, but new kinds of collateral will be decided by future votes. This upgrade also includes the Dai Savings Rate (DSR) and several security features.
We voted in favor of migrating from Single-Collateral Dai to Multi-Collateral Dai.
We have long been believers in the power of cryptonetworks, and the fact that they are governed by a community of token holders who have a voice in the form of a vote. Successful governance of the Maker ecosystem requires the participation of the broader Maker community. The addition of several new risk parameters — multiple collateral types, the Dai Savings Rate (which rewards Dai holders with variable interest), and the new auction-based liquidation mechanism — increase the complexity and demands of governance. These new features are critical governance tools, necessary for improving Dai’s stability, mitigating systemic risks, and accelerating the growth of the Maker ecosystem.
We will be following the migration closely and are prepared to vote on changes to system parameters to facilitate it. And we’re excited to be part of building a more accessible, inclusive, and stable global financial system.
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments for which the issuer has not provided permission for a16z to disclose publicly as well as unannounced investments in publicly traded digital assets) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures/ for additional important information.