We have recently gotten information on the 5 phases of the Endgame Plan. This week, I will summarize the key points of each phase.
Phase 1: Token Launch
This phase is expected this year. In phase one, the previously discussed new governance token and new stablecoin will be released under a unified brand. DAI and MKR will not go away, but users will be incentivized to switch over with farming rewards. Newgovtokens and increased dex liquidity will be provided for this purpose.
Additionally, a new burn will be activated, where Newgov/DAI LP tokens will be purchased whenever the surplus buffer is above 50 million.
Phase 2: SubDAO launch
In Phase 2, SubDAOs will launch along with SubDAO token farming rewards for holders of the new stablecoin. SubDAOs function as specialized subsidiaries within MakerDAO that have their own internal governance structure. Much of the complexity of MakerDAO will be delegated out to them. There will be FacilitatorDAOs that manage governance and AllocatorDAOs that allocate collateral. Income from SubDAOs will be used to provide liquidity for their SubDAO tokens.
US based holders are banned from participating in all forms of token farming.
Phase 3: AI Launch
In Phase 3, AI tools will be launched that improve, summarize and interpret MakerDAO’s governing documents. This is intended to give everybody equal access to navigating the bureaucracy of MakerDAO.
These AI tools will also be free and open source, furthering the public good purpose of MakerDAO.
Phase 4: Governance Participation Rewards
In this phase, NewGovToken holders will be able to earn yield by delegating their voting power to various strategies. 30% of the protocol’s surplus will be dedicated to these rewards. In return, 15% of your NewGovTokens are burned when you unlock tokens from governance. This is intended to incentivize long term commitment to MakerDAO governance.
US based holders are banned from receiving rewards.
Phase 5: NewChain Launches
MakerDAO’s new blockchain is deployed and the endgame is achieved. The core governing document of MakerDAO(Atlas) will be made immutable. The backend for MakerDAO and SubDAOs will be transferred to this new chain, while tokens continue to otherwise function normally. The native token for gas fees will be a yield earning version of the new stablecoin.
The new chain is intended to help MakerDAO recover from major governance attacks and bugs through the use of hard forks.