MakerDAO, the organization behind the popular decentralized stablecoin DAI, has proposed a new blockchain and two new tokens to improve the stability and scalability of its platform. The proposal, called MCD (Multi-Collateral Dai), was introduced by MakerDAO founder Rune Christensen at the Devcon4 conference in Prague.
The current version of DAI is backed by a single collateral, Ethereum. This means that if the value of Ethereum drops significantly, the value of DAI will also drop. MCD aims to solve this problem by allowing multiple types of collateral to back DAI, including other cryptocurrencies and even real-world assets like gold or real estate.
The new blockchain proposed by MakerDAO is called DaiChain. It will be a dedicated blockchain designed specifically for the DAI stablecoin and other MakerDAO tokens. DaiChain will be built on top of the Ethereum network, but will have its own consensus mechanism and governance system.
The two new tokens proposed by MakerDAO are called DSR (Dai Savings Rate) and MKR (Maker). DSR will be a token that represents the interest earned on DAI deposits. Users who hold DAI in their wallets will automatically earn interest in the form of DSR tokens. MKR, on the other hand, will be used for governance and risk management on the MakerDAO platform. MKR holders will be able to vote on important decisions like which types of collateral should be accepted for backing DAI.
The MCD proposal has been in development for over a year and has undergone extensive testing and auditing. The MakerDAO team believes that it will make the DAI stablecoin more stable and secure, while also improving its scalability and usability.
One potential benefit of MCD is that it could make it easier for people to use DAI as a medium of exchange. Currently, DAI is primarily used as a store of value or a way to hedge against cryptocurrency volatility. However, with the addition of multiple types of collateral, DAI could become more widely accepted as a means of payment.
Another potential benefit of MCD is that it could make the MakerDAO platform more resilient to market shocks. By diversifying the types of collateral that back DAI, MakerDAO could reduce the risk of a single asset causing a catastrophic failure of the system.
Overall, the MCD proposal represents a significant step forward for MakerDAO and the broader decentralized finance (DeFi) ecosystem. If implemented successfully, it could make DAI and other MakerDAO tokens more stable, secure, and useful for a wide range of applications.
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