Stablecoin DAI issuers are considering taking steps toward decentralization.
MakerDAO, the issuer of DAI stablecoin cryptocurrency on Ethereum blockchain, co-founder Rune Christensen claims that it may be the time for DAI to detach from USD Coin (USDC).
According to the blog post shared by the co-founder, the Dai (DAI) cryptocurrency should return to its initial plan and become decentralized.
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Commenting on this decision, Christensen noted:
And just like this was the original design of Dai, choosing the path of decentralization means preparing for the likely possibility that Dai will have to become free floating. The reason for this is simple: the path of decentralization means limiting our attack surface to physical threats, and specifically our RWA collateral as a percentage of the total portfolio.
The co-founder highlights that the company may have underestimated the risk-weighted assets (RWA) and their uncertainty. Therefore, the only way to comply with the rules proposed by governmental regulators is to become decentralized.
Based on the blog post, the company feels backed into a corner and claims that the biggest downside connected with decentralization is that DAI will lose its value related to the dollar. However, MakerDAO's co-founder highlights that there are a few positives worth focusing on.
Christensen refers to it as an Endgame Plan. The co-founder noted that the first perk is creating a MetaDAO token, this way:
You can provide this benefit to Dai holders right “in their face” by yield farming them MetaDAO tokens of projects that have real, profitable, sustainable, and fully decentralized business models…
The last perk of decentralization, according to Christensen, is Protocol Owned Vault. The man believes that it will help Maker to stabilize “free-floating Dai”. Moreover, it would allow “accumulate large amounts of leveraged, Staked ETH”.
However, it is worth noting that more than 50% of DAI is collateralized by USDC.
The talks about decentralizing its stablecoin come shortly after virtual currency mixer Tornado Cash has been sanctioned by the US Treasury.
