Ethereum co-founder, Vitalik Buterin expressed his excitement about the Ethereum application ecosystem. He shared a blog post on December 5th, 2022 and detailed the same.
As a part of their future plans, Ethereum will consider DAO-backed stablecoins and proceed towards the strong buying momentum even after the boomed sell pressure.
In his blog, he mentioned “DAO” as a powerful term. And it is a smart contract that represents a structure of ownership or control over some asset or process.
Stablecoin Design Space Categorization
As mentioned in the blog, Ethereum co-founder see the stablecoin design space being divided into three different categories:
- Centralized Stablecoins, such as USDC, USDT, or BUSD
- DAO-governed RWA (Real-World-Asset) backed Stablecoins, such as DAI
- Governance-Minimized Crypto-Backed Stablecoin, such as RAI, LUSD
According to Mr.Buterin “From the user’s perspective, the three types are arranged on a tradeoff spectrum between efficiency and resilience.”
He also added about the MakerDAO [MKR] as “MakerDAO has $7.8 Billion in collateral, over 17x the market cap of the profit-taking token, MKR. Hence, if governance was up to MKR holders with no safeguards, someone could buy up half the MKR, use that to manipulate the price oracles, and steal a large portion of the collateral for themselves.”
He pointed out that it can happen with smaller stablecoins and hasn’t happened to MKR yet largely as its holdings are still fairly concentrated. It is a fine model to get a stablecoin started, but still not a good one for the long term. And making decentralized stablecoins that work long term needs innovating in decentralized governance that does not have these kinds of flaws.
Ethereum head also mentioned that “FTX collapse has shown many people the importance of truly decentralized solutions to holding funds.”
Ethereum Price
The second most traded cryptocurrency, Ethereum is currently trading at a price of $1229.54 USD with a 24-hours trading volume of $5.95 Billion. Ethereum is down 2.11% in the last 24 hours with a live market cap of $150.46 Billion USD.
The popular crypto analysts predicted ETH price for Christmas despite the miner capitulation. Michael van de Poppe predicted Bitcoin and Ethereum prices as Bitcoin can continue to rally toward $18.3k after a retest of the $16.6k support level. He earlier predicted that the Ethereum price is already showing strength as it flipped from the $1,150 level.
He is still optimistic that a break-out above $1,225 opens a run towards $1,350 and possibly $1,550.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/12/08/ethereum-co-founder-revealed-future-plans-with-dao-stablecoins/