MakerDAO founder Rune Christensen has published an essay outlining measures that can be taken to turn the protocol into a tool to combat climate change.
In a long post October 5th posted on the MakerDAO Governance Forum, Christensen claimed that MakerDAO should strive to ensure that all of its collateral contains “sustainable and sustainable assets.”
Christensen contends that the protocol’s collateral should be invested in real sustainable assets (RWA) through priority loan placements in projects that build “solar farms, wind turbines, batteries, charging stations and other low-cost renewable energy and sustainable” resource extraction and supply chains. “He added:
“Today we have everything we need to expand our RWA exposure to hundreds of billions of dollars and beyond, securely and fully compliant with financial regulations using a fiduciary-based real-life asset model that the community in the Has evolved over the years. “
Related: MakerDAO dissolves foundation and is really decentralized again
Christensen also expressed the need for MakerDAO to restore its commitment to decentralized collateral, advocating that the protocol make use of the Ethereum network and the Ether token.
MakerDAO users store crypto assets in the protocol as security for the mining of Stablecoin Dai (DAI). While Ether was originally supported solely by the protocol, it has since been expanded to support other assets such as USD Coin, Wrapped Bitcoin, and Basic Attention Token.
The Maker of Maker highlighted the improved environmental performance expected from Ethereum’s transition to Proof-of-Stake consensus with Eth2, stating:
“As soon as the upgrade from Proof of Work to Proof of Stake is complete, Ethereum will become a highly energy-efficient blockchain. ETH is becoming a sustainable contender for Bitcoin’s current role as the main cryptocurrency. “