Rune Christensen, founder of MakerDAO, has written an essay detailing the steps that can be taken to make this protocol work for climate change.
Christensen, in a long Oct. 5 post to the MakerDAO governance forum, asserts that MakerDAO should aim to ensure that all collateral is “sustainable and climate aligned assets that take into account the long-term effects of financial activity on environment.”
Christensen stated that the protocol’s collateral should go into sustainable real-world asset (RWAs), through senior credit positions in projects that create “solar farms and wind turbines, batteries and other cost-efficient renewable energie solutions as well as their supply chain, sustainable resource extraction, and recycling.”
“Today, we have all the necessary tools to scale our RWA exposure to hundreds or billions of USD, and beyond. This is securely and in compliance with financial regulations, using the trustee-based model that real-world assets has been able to develop over many years.
Related: MakerDAO to disband Foundation and make it truly decentralized again
Christensen also argues that MakerDAO must reaffirm its commitment to decentralized collateral. He recommends that the protocol return back to relying upon the Ethereum network as well as the Ether token.
MakerDAO users can deposit crypto assets to the protocol in order to secure the minting of the Dai stablecoin (DAI). Although Ether was initially supported only by the protocol, it has expanded to include other assets such as USD Coin, Wrapped Bitcoin and Basic Attention Token.
Maker’s founder stressed the increased environmental efficiency that Ethereum’s transition from Proof-of-Stake to consensus with Eth2 will bring.
“Ethernet will be a high-energy efficient blockchain once the upgrade from proofof work to proofof stake is complete.” ETH will be a viable competitor to Bitcoin’s current position as the principal cryptocurrency.
Eileen Wilson –Technology and Energy
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