Rune Christensen, co-founder of DeFi platform MakerDAO, says free-floating DAI is the only path to decentralization and regulatory compliance.

noted that after September 11, 2001 Fiscal regulation has shifted towards zero tolerance for these vehicles that the authorities have no control over. Christensen added that recent events such as Terra, Celsius and others have undermined trust in digital currencies and DeFi.

“Physical retaliation against the crypto industry can occur without prior notice and the possibility of recovery, even for law-abiding innocent users,” he said.

In his view, this violates the underlying assumptions underlying asset risk-weighted (RWA) assessments to secure DAI stablecoins and makes the “authoritarian threat” too serious.

Christensen believes Maker cannot create a blacklist, so the platform does not comply with it.

“The only option is to limit the attack surface by reducing the effect of RWA to the maximum fixed percentage of the total collateral. This requires free movement from the USD,” said the MakerDAO founder.

According to Christensen, two main tools will help provide a solution: MetaDAO and Protocol Owned Vault.

Profitable DAI farming through MetaDAO will enable users to accept a floating coin against the dollar. Christensen said the resulting reward tokens will drive the supply of DAI through decentralized supply.

The Protocol Owned Vault will allow the platform to earn and cap negative DAI target rates.

At the time of writing, 51% of Maker’s stablecoin supply is backed by USDC. The total value of the funds blocked on the platform is $9.26 billion.

On August 9, Circle blacklisted the USDC wallet addresses of its Tornado Cash mixing service. This followed the introduction of sanctions against the service. OFAC. In total, one of the stablecoin operators blocked the movement of at least 75,000 USDC.

Against this background, MakerDAO began developing a plan to reduce reliance on USDC.

Recall that Ethereum co-founder Vitalik Buterin criticized the idea of ​​rebalancing the platform’s DAI collateral for ETH, which included the sale of $3.5 billion USDC.

Read ForkLog bitcoin news in our Telegram – cryptocurrency news, courses and analysis.