How does the transition to a Solana-based blockchain influence MakerDAO? This question is being asked in the wake of Ethereum co-founder Vitalik Buterin offloading his remaining 500 MakerDAO tokens on CoW Protocol, garnering approximately $580,000 in return, according to blockchain data. This decision came on the heels of a blog post by MakerDAO co-founder and CEO Rune Christensen, revealing plans for a reformation of the project on a new blockchain, potentially a fork of the Solana blockchain, named NewChain.
Implications of a Transition to Solana
The switch to a Solana-based blockchain would be a significant change for MakerDAO, which is currently developed in Solidity and anchored on Ethereum. Christensen’s vision of Solana’s potential is based on three main factors. Firstly, the technical quality and optimization of the Solana codebase impressed him. Secondly, he admired the resilience of the Solana ecosystem following the FTX incident. Lastly, he took into consideration the previous successful forks of Solana, such as the Pyth Network.
Future Prospects with NewChain
Christensen envisions a future where MakerDAO’s NewChain could act as a secure conduit between Ethereum and Solana, thus amplifying the network effect of the entire multichain economy. Cosmos was also identified by Christensen as a strong contender for NewChain’s codebase.
MakerDAO’s Current Position
At present, MakerDAO’s dai stablecoin is the third-largest USD-pegged stablecoin, with a supply of $3.9 billion. However, it is significantly behind Tether, the market leader with a supply of $82.9 billion, as per data from The Block.
Buterin’s decision to sell his stake was a quiet affair. He had acquired his initial stake of 1071 MKR tokens back in April 2018, when the price was $905. This implies that he made a profit of around 27% on the tokens he sold recently. The last time Buterin dealt with his MKR tokens was in April 2021, when he donated 100 tokens to India’s Covid relief fund, as indicated by blockchain data.
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