Research Summary
MakerDAO, the largest decentralized autonomous organization (DAO), has been a pioneering force in the DeFi ecosystem, particularly with the creation of the DAI stablecoin. The organization is now focusing on SubDAOs, smaller communities that focus on specific aspects of Maker’s broader objectives. These SubDAOs are designed to foster alignment and drive innovation within the Maker ecosystem. MakerDAO’s new strategy aims to make finance more enjoyable and accessible, while also addressing specific regional needs and opportunities.
Key Takeaways
MakerDAO’s Role in DeFi
- Decentralized Autonomous Organization: MakerDAO is the largest and most established DAO, harnessing blockchain and crypto to govern a substantial on-chain economic system.
- DAI Stablecoin: MakerDAO is the creator of the DAI stablecoin, the world’s biggest decentralized stablecoin, which has positioned the organization as a leader in the DeFi ecosystem.
- Consistent Progress: Despite challenges, MakerDAO’s consistent commitment to clear goals over the last eight years has kept it in the spotlight.
SubDAOs: A Game Changer
- SubDAOs Introduction: MakerDAO is focusing on SubDAOs, smaller communities that focus on specific aspects of Maker’s broader objectives, to foster alignment and drive innovation.
- SubDAOs’ Role: SubDAOs are designed to make finance more enjoyable and accessible, allowing users to experience DeFi without the associated risks.
- SubDAOs’ Governance: SubDAOs are governed by their own tokens and are run by DAI users or existing community members of the Maker community.
SubDAOs: Examples and Focus
- SakuraDAO: SakuraDAO is one of the SubDAOs aligning with Maker’s vision, with a distinct regional focus on the Japanese community.
- SparkDAO: SparkDAO is a DAI-centric money market protocol leveraging liquidity from Maker to offer incredible yields.
- Real-World Asset SubDAOs: These SubDAOs focus on public-credit Real-World Assets (RWAs) and on-chain tokenization for tangible assets, aiming to bridge the gap between private and public credit.
Tokenomics and Alignment Engineering
- Tokenomics: MakerDAO’s approach to tokenomics is through “Alignment engineering”, which is designed to push people towards aligned behaviour and away from the pitfalls of the space.
- Free Tokens: Users can get free tokens from the SubDAOs simply by holding DAI and opting in.
- Sustainability: Understanding the meticulous thought and planning that went into the tokenomics of this venture is crucial, as it plays a pivotal role in the long-term viability of these tokens and the overall ecosystem.
Actionable Insights
- Investigate the Potential of SubDAOs: SubDAOs offer a fresh perspective on how blockchain innovations can extend into the real world. They have the potential to craft a financial ecosystem that is not only functional but also enjoyable and accessible to a broader audience.
- Consider the Regional Focus: SubDAOs take a localized approach, tailoring their efforts to address specific regional needs and opportunities. This could be a significant factor in their success.
- Understand the Importance of Tokenomics: The tokenomics of a venture plays a pivotal role in its long-term viability. Understanding the thought and planning that went into the tokenomics of MakerDAO’s SubDAOs is crucial.
