In a recent blog post, Rune Christensen, the co-founder and CEO of MakerDAO, outlined the project’s long-term vision, which includes a significant shift in its underlying technology. Christensen proposed that MakerDAO could be re-implemented on a new blockchain called NewChain. This new blockchain could be forked from the Solana codebase, a move that would mark a significant departure from MakerDAO’s current Ethereum-based architecture.
Christensen cited three reasons for considering Solana as a viable option for NewChain. First, he praised the technical quality and optimization of the Solana codebase. Second, he acknowledged the resilience of the Solana ecosystem, particularly in the wake of the “FTX blowup.” Finally, he pointed to past successful forks of Solana, such as the Pyth Network, as evidence of the blockchain’s robustness and adaptability.
Christensen also mentioned Cosmos as another strong contender for NewChain’s codebase. The CEO envisions a future where NewChain could act as a secure bridge between Ethereum and Solana, thereby enhancing the network effect of the entire multichain economy.
The financial landscape of stablecoins
MakerDAO’s native stablecoin, Dai, is currently the third-largest USD-pegged stablecoin, with a supply of $3.9 billion. However, according to data from The Block, it lags significantly behind the market leader, Tether, which boasts a supply of $82.9 billion. The proposed move to a Solana-based NewChain could give MakerDAO the technological edge to close the gap with its competitors.
Christensen’s announcement comes at a time when the stablecoin market is becoming increasingly competitive. With the rise of decentralized finance (DeFi) and the growing adoption of cryptocurrencies, stablecoins like Dai play a crucial role in providing a stable medium of exchange within volatile markets. The proposed transition to a Solana-based blockchain could offer faster transaction speeds and lower fees, making Dai more attractive to retail and institutional investors.
Vitalik Buterin’s quiet exit
Following Christensen’s announcement, Ethereum co-founder Vitalik Buterin sold his remaining stake of 500 MakerDAO tokens on the CoW Protocol. He received 353 ETH in return, equivalent to about $580,000. Buterin acquired 1071 MKR tokens in April 2018, when the price was $905 per token. His recent sale indicates a gain of approximately 27% on the tickets he sold.
This isn’t the first time Buterin has made a move with his MakerDAO tokens. In April 2021, he donated 100 MKR tokens to India’s Covid relief fund. The sale of his remaining stake could be interpreted in various ways. It might signal a lack of confidence in MakerDAO’s proposed transition to a Solana-based blockchain, or it could be a strategic financial move on Buterin’s part.
Blockchain data shows that this is the first time Buterin has touched his stash of MKR tokens since his donation last year. The Ethereum co-founder has not publicly commented on his reasons for the sale, leaving the crypto community to speculate on the implications of his decision.
Conclusion
The proposed transition of MakerDAO to a Solana-based blockchain has stirred the pot in the crypto community. While some see it as a strategic move to enhance the project’s technological capabilities, others question the long-term implications for MakerDAO’s relationship with Ethereum. Vitalik Buterin’s sale of his MakerDAO stake adds another layer of complexity to the unfolding narrative. As the crypto world watches closely, the decisions made in the coming months could have far-reaching impacts on the future of MakerDAO and the broader multichain economy.
