Rune Christensen wants to reduce the dollar dependency for the DAI steiblocoin
New US laws and sanctions are forcing this
The co-founder of MakerDAO has released a post reflecting on the future of cryptocurrencies in light of sanctions and politics. The main thought is that the DAI Stablecoin has no choice but to abandon the dollar peg. As well as increasing decentralisation.
The DAI’s collateral and parity with the dollar is based on the RWA (Risk-weighted asset). Rune Christensen admits that these calculations were wrong because they did not take into account two new factors. The first is the authorities’ ability to block crypto-assets. And the second is the tightening of regulatory requirements.
“The authoritarian threat is becoming more serious. We have to choose decentralisation, that was the goal of Dai.”
Christensen believes there is an urgent need to reduce the impact of state policy and sanctions on the MakerDAO protocol. His proposal includes changing the structure of the RWA and reducing the percentage of dollar collateral. This would mean making the stablcoin exchange rate “floating”.
So far, the co-founder of MakerDAO is not proposing any specific action or vote. However, the protocol does have a strong dependence on the dollar. According to Dai Stats, around 50.1% of DAI stablcoins are collateralised in USDC. Meanwhile, USDC issuer Circle has stated that it will comply with US sanctions on Tornado Cash.