Vitalik Reacts to Tensions Rising Between MakerDAO and ETH

Lately, the founder of MakerDAO made an announcement that caused panic in the Ethereum community. He said that the Solana will be forked for the project’s future appchain migration. Shortly after that, Ethereum co-founder Vitalik Buterin sold his stake of 500 MKR for 353 ETH ($580,000). 

Here’s How The Incident Unfolded

The news quickly affected the price of Maker’s MKR governance token which was reduced by 5.6%. A little later, Buterin made his stance clear on the Discord server for Reflexer. For the uninitiated, Reflexer is an ETH-backed competitor to MakerDAO’s DAI stablecoin. He asked Reflexer to make the most of this opportunity.  

The ETH co-founder suggested Reflexer welcomes minority liquid staking tokens (LSTs). This move will result in Ethereum’s higher capitalization in the stablecoin sector. As Maker has planned an exit from the network, the proactive approach will keep its competitors ahead.

Reacting to MakerDAO’s move, Buterin said that it’s taking reckless actions. He said that the time is right for RAI to become a dominant figure in this space. He advised the team to get hold of governance and to support active forms of staked ETH. Currently, Lido commands three-quarters of the liquid staking market. Its prevalent position has caused fears of centralization among users.

Rune Christensen, the co-founder of MakerDAO published a thesis on September 1, 2023. In the statement, he talked about the plans for future appchain deployment. It also explained that the new program would work on the fork of the Solana codebase. He also talked about Solana’s scalability and its multiple clients for security.

Furthermore, the thesis drew attention to other projects that launched appchains on forked Solana before. He argued that the Solana ecosystem is capable of expansion. He also praised it for its resilience because the protocol flourished even when many others suffered due to FTX. 

Christensen also mentioned Cosmos as a suitable option but remarked that it’s not as efficient as Solana.  

How the Final Stage is Taking Shape?

As per the thesis, Christensen has already planned the final stage of the appchain migration. He has named it “Endgame” which would be executed very soon. The program will include launching a new network too. It would exclusively host MakerDAO while making some changes to MKR and DAI tokens. In addition to that, it reorganizes distinct subDAOs and improves the governance models. Concluding the statement, he said that the development of appchain will take at least three years.  

Appchains Are Getting Popular

All the ongoing developments have made appchains quite popular. They are gaining attention from the select circles of investors right now. In the future, its popularity is expected to get higher. Moreover, it makes the applications faster and transactions cheaper. 

Upshot

Many crypto enthusiasts are also taking this news positively. They are focusing appchain that could do great things for everyone. In addition to that, it is providing the real potential of Solana too. Hence, there are people looking forward to this fork. Hopefully, the MakerDAO will also recover the prize quickly. 

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.

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