MakerDAO ‘Endgame Plan’ Calls for Specialized DAOs, Says Protocol is Held Back by Complexity

cryptonews.com:

A detailed proposal to bring the MakerDAO (MKR) protocol to a “predetermined, immutable end state” by setting up several new decentralized autonomous organizations (DAO) has been published by the protocol’s founder Rune Christensen. The plan aims to improve governance and tap into “the raw power of modern [decentralzed finance] (DeFi) innovation.”

Posted on the MakerDAO forum by Christensen earlier this week, the plan’s central tenet is the formation of a series of new DAOs called MetaDAOs that would take on more specialized tasks in order to keep Maker’s core from becoming too complex.

MakerDAO is a smart contract lending protocol that allows users to take out loans by depositing digital assets as collateral. The loans are issued in the form of the stablecoin DAI.

The proposed DAOs in the MakerDAO ecosystem would initially be created as a single DAO to test the concept in a low-risk way, while more DAOs that specialize in different areas would be formed later.

The idea behind creating the MetaDAOs in addition to the already existing DAO that governs the Maker protocol today is to allow for more specialization without increasing the complexity of MakerDAO’s core.

Christensen described the idea behind the new DAOs, writing: 

“MetaDAOs allow for deep specialization by workforce, community and governance process because each MetaDAO can focus on their desired specialization, allowing them to devote the necessary resources and focus to become properly specialized, and not be distracted by other responsibilities.” 

He added that this is “a much better situation” than the current one, where he said Maker has to specialize in “a large amount of completely disjoint categories.”

Maker is right now being held back by its “overwhelming and