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The MakerDAO Endgame Plan is a comprehensive strategy aimed at enhancing governance and tokenomics within the Maker Ecosystem to achieve a stable, self-sustainable state known as the "Endgame State." Proposed by Rune Christensen, the co-founder of Maker, key components include compliance to the regulatory risk, decentralization of governance via SubDAOs with their own tokens, reducing governance overhead, and revising tokenomics to balance MKR concentration and burn mechanisms.
In the past six months, MakerDAO has accounted for nearly 40% of DeFi profits on Ethereum. The secret of its success is DAI, which has a currency premium. Maker's annual revenue exceeds $400 million, surpassing all projects in the industry except Ethereum, Tron and Solana. However, Maker's price-to-earnings ratio has been suppressed, and the launch of 'Endgame' may reverse this situation. 'Endgame' may bring billions of dollars in fee opportunities and a $40 billion project valuation to Maker. Morpho Vault, launched through Spark, provides Ethena with a $1 billion credit line, and currently only uses 300 million DAI to bring Maker $70 million in annualized revenue. Maker's first subDAO Spark may be launched with a valuation of $2.5 billion to $5 billion, providing $500 million to $1 billion in incentives for DAI holders.
Operational framework of MakerDAO
Atlas (Atlas Immutable Alignment Artifact) is a charter of MakerDAO, defining the high-level description of the DAO, its participants, incentives, and work scope. It is an almighty principle that overrides all other. Scope Artifacts (Scope Bounded Mutable Alignment Artifacts) are frameworks that illustrate the area of work (Scope) and can be amended through subproposals. Maker Protocol has Governance, Support, Protocol, Stability and Accessibility Scope.
Atlas is secured by Alignment Conservers. There are two types of Alignment Conservers, an AVC (Aligned Voter Committee) member and an Aligned Delegate. Aligned Voter Committees seeks growth of the DAO with different strategies and new proposals to the Scope Artifacts. Aligned Delegates support AVCs with relevant contributions and commitment.
SubDAOs
SubDAOs are semi-independent, specialized DAOs under the MakerDAO for the purpose of efficiency and effectiveness in governance and execution. They issue unique governance token and are driven by custom governance schemes that abide with the bigger rule. Think of a state in a country or a division within a company.
FacilitatorDAOs organize and execute the internal mechanism of all others, AllocatorDAOs generate Dai and allocate to broader DeFi ecosystem. MiniDAOs are spun off by AllocatorDAOs, more like an experimental project of an product or service.
Tokenomics
Elixir is a 50:50 liquidity pool token for Dai and $MKR. The MakeDAO accumulates Elixir with their surplus capital and utilize it for price stability mechanism. SubDAOs accumulate Elixir using their surplus capital and lock it to get a portion of the $MKR emission. SubDAOs can also burn their own governance token for price control.
SubElixir works in the same mechanism but consists of SubDAO token and $MKR.
Maker Core emits a total of 60,000 $MKR each year for subDAOs, emits a total of 5,000 $MKR to incubate new SubDAOs and payroll. The Endgame plan introduces the Maker Smart Burn Engine, a mechanism to further protect and boost the value of $MKR token.
SubDAOs have their own governance token minted by the MakerDAO and has the following rule.
The initial supply of each subDAO token is 2.6 billion. 400 million SubDAO tokens are set aside to be used as incentives for the SubDAO's workforce. 200 million SubDAO tokens are sold for DAI over a period of 2 years and used to fund the SubDAO treasury. 2 billion of each SubDAO's tokens are used for yield farming during the first 10 years of the SubDAO's lifespan. Each SubDAO emits 3% of their total supply each year and is added to the token farms of the SubDAO.
75% of the initial SubDAO token distribution is farmable by Dai holders. 25% of the initial SubDAO token distribution is farmable by MKR holders that are active in Maker Core governance.
The Endgame launch tokenomics also introduces Dai Savings Rate (10-11%), benefiting the Dai holders. Holders of the $MKR token can lock up their tokens with the Sagittarius Engine, the locked tokens can be used to token farming and generate Dai by using it as a colalteral.
“Endgame is a fundamental transformation of MakerDAO that improves growth, resilience and accessibility, with the aim of scaling the Dai supply to 100 billion and beyond.”
Endgame Phase 1 will reveal the new brand, introducing two fresh tokens - NewStable and NewGovToken. Addition functions include Lockstake Engine (User can lock $MKR or NewGovToken) and "NewBridge" facilitating layer-2 yield farming.
Phase 1 introduced SparkDAO. Maker's DeFi subDAO, a lending platform (Aave fork) also providing Dai Savings program which returns yields from treasury or yield-generating assets.
Phase 2 will focus on scaling and Phase 3 introduces NewChain - a standalone L1 blockchain for MakerDAO and SubDAOS, also serving as a hub for Real World Assets, DeFi and inter-blockchain ecosystem.
Phase 4 will make all foundation governance mechanisms of the Maker Core become immutable.
Source
The MakerDAO Endgame Plan is a comprehensive strategy aimed at enhancing governance and tokenomics within the Maker Ecosystem to achieve a stable, self-sustainable state known as the "Endgame State." Proposed by Rune Christensen, the co-founder of Maker, key components include compliance to the regulatory risk, decentralization of governance via SubDAOs with their own tokens, reducing governance overhead, and revising tokenomics to balance MKR concentration and burn mechanisms.
In the past six months, MakerDAO has accounted for nearly 40% of DeFi profits on Ethereum. The secret of its success is DAI, which has a currency premium. Maker's annual revenue exceeds $400 million, surpassing all projects in the industry except Ethereum, Tron and Solana. However, Maker's price-to-earnings ratio has been suppressed, and the launch of 'Endgame' may reverse this situation. 'Endgame' may bring billions of dollars in fee opportunities and a $40 billion project valuation to Maker. Morpho Vault, launched through Spark, provides Ethena with a $1 billion credit line, and currently only uses 300 million DAI to bring Maker $70 million in annualized revenue. Maker's first subDAO Spark may be launched with a valuation of $2.5 billion to $5 billion, providing $500 million to $1 billion in incentives for DAI holders.
Operational framework of MakerDAO
Atlas (Atlas Immutable Alignment Artifact) is a charter of MakerDAO, defining the high-level description of the DAO, its participants, incentives, and work scope. It is an almighty principle that overrides all other. Scope Artifacts (Scope Bounded Mutable Alignment Artifacts) are frameworks that illustrate the area of work (Scope) and can be amended through subproposals. Maker Protocol has Governance, Support, Protocol, Stability and Accessibility Scope.
Atlas is secured by Alignment Conservers. There are two types of Alignment Conservers, an AVC (Aligned Voter Committee) member and an Aligned Delegate. Aligned Voter Committees seeks growth of the DAO with different strategies and new proposals to the Scope Artifacts. Aligned Delegates support AVCs with relevant contributions and commitment.
SubDAOs
SubDAOs are semi-independent, specialized DAOs under the MakerDAO for the purpose of efficiency and effectiveness in governance and execution. They issue unique governance token and are driven by custom governance schemes that abide with the bigger rule. Think of a state in a country or a division within a company.
FacilitatorDAOs organize and execute the internal mechanism of all others, AllocatorDAOs generate Dai and allocate to broader DeFi ecosystem. MiniDAOs are spun off by AllocatorDAOs, more like an experimental project of an product or service.
Tokenomics
Elixir is a 50:50 liquidity pool token for Dai and $MKR. The MakeDAO accumulates Elixir with their surplus capital and utilize it for price stability mechanism. SubDAOs accumulate Elixir using their surplus capital and lock it to get a portion of the $MKR emission. SubDAOs can also burn their own governance token for price control.
SubElixir works in the same mechanism but consists of SubDAO token and $MKR.
Maker Core emits a total of 60,000 $MKR each year for subDAOs, emits a total of 5,000 $MKR to incubate new SubDAOs and payroll. The Endgame plan introduces the Maker Smart Burn Engine, a mechanism to further protect and boost the value of $MKR token.
SubDAOs have their own governance token minted by the MakerDAO and has the following rule.
The initial supply of each subDAO token is 2.6 billion. 400 million SubDAO tokens are set aside to be used as incentives for the SubDAO's workforce. 200 million SubDAO tokens are sold for DAI over a period of 2 years and used to fund the SubDAO treasury. 2 billion of each SubDAO's tokens are used for yield farming during the first 10 years of the SubDAO's lifespan. Each SubDAO emits 3% of their total supply each year and is added to the token farms of the SubDAO.
75% of the initial SubDAO token distribution is farmable by Dai holders. 25% of the initial SubDAO token distribution is farmable by MKR holders that are active in Maker Core governance.
The Endgame launch tokenomics also introduces Dai Savings Rate (10-11%), benefiting the Dai holders. Holders of the $MKR token can lock up their tokens with the Sagittarius Engine, the locked tokens can be used to token farming and generate Dai by using it as a colalteral.
“Endgame is a fundamental transformation of MakerDAO that improves growth, resilience and accessibility, with the aim of scaling the Dai supply to 100 billion and beyond.”
Endgame Phase 1 will reveal the new brand, introducing two fresh tokens - NewStable and NewGovToken. Addition functions include Lockstake Engine (User can lock $MKR or NewGovToken) and "NewBridge" facilitating layer-2 yield farming.
Phase 1 introduced SparkDAO. Maker's DeFi subDAO, a lending platform (Aave fork) also providing Dai Savings program which returns yields from treasury or yield-generating assets.
Phase 2 will focus on scaling and Phase 3 introduces NewChain - a standalone L1 blockchain for MakerDAO and SubDAOS, also serving as a hub for Real World Assets, DeFi and inter-blockchain ecosystem.
Phase 4 will make all foundation governance mechanisms of the Maker Core become immutable.
Source
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