MakerDAO co-founder Rune Christensen has proposed the launch of a native blockchain, named "NewChain," for the Maker (MKR) ecosystem. This blockchain aims to enhance security and efficiency and is part of the fifth phase of Maker's long-term roadmap, known as "Endgame." Originally, Endgame outlined the launch of NewChain as a separate chain with backend security interacting with Ethereum through a bridge. However, Christensen's recent blog post suggests that a Solana-based fork should be considered as the foundation for NewChain, citing specific reasons for this choice.

Solana Codebase Advantages

Christensen identifies three key reasons for considering Solana's codebase as the basis for NewChain:

Technical Quality: The Solana codebase is highly optimized for efficient blockchain operation, aligning well with NewChain's objectives. It benefits from being designed after blockchain bottlenecks and challenges were well understood, addressing Maker's technical debt. Solana already boasts two client implementations, crucial for resilience.

Ecosystem Resilience: Despite experiencing challenges, such as the FTX incident, the Solana ecosystem has demonstrated resilience with a thriving developer community. This resilience, coupled with a significant Lindy Effect, suggests long-term sustainability and cost-efficiency for Maker's development and maintenance.

Forking Success: Solana's codebase has successfully been forked and adapted for appchains, as evidenced by projects like Pyth. This adaptability indicates that it can serve as a reliable foundation for NewChain.

Conclusion

Rune Christensen's proposal to explore a Solana-based codebase for Maker's native blockchain, NewChain, represents a significant development in the #MakerDAO ecosystem. The potential benefits of Solana's technical quality, ecosystem resilience, and demonstrated forking success make it a compelling candidate. As MakerDAO progresses through the Endgame roadmap, this strategic choice could contribute to a more secure and efficient ecosystem. It remains to be seen how the Maker community and stakeholders will respond to this proposal and whether it will be integrated into the project's future developments.

$MKR

The DeFi (Decentralized Finance) ecosystem is one of the significant developments in the cryptocurrency sector, drawing considerable interest with its opportunities and innovations. The governance token of leading credit provider MakerDAO, MKR, experienced a significant price increase following the implementation of a buyback program. MKR token reached nearly a one-year high, showcasing remarkable performance in the DeFi world.

Rising Value:

Early on Friday, the MKR token briefly surpassed $1,200, reaching this level for the first time since August. However, the price later retraced somewhat and traded around $1,148. This surge significantly outperformed the CoinDesk Market Index's 4.6% decline, which had been tracking the overall cryptocurrency market performance last week.

The price movements of the token were a result of the credit protocol activating a token buyback plan on Wednesday. This program is executed through a system called the Smart Burn Engine. Maker utilizes this mechanism to regularly purchase excess DAI stablecoins from the UniSwap pool, which is disclosed through a governance proposal.

Token Buyback Program:

The token buyback plan was activated at the beginning of this month and kicks in when the surplus buffer exceeds $50 million. In the past 24 hours, the protocol has bought back approximately $230,000 worth of MKR tokens, according to Etherscan blockchain data. At this rate, it is expected that the protocol will buy $7 million worth of tokens in the coming month. With the total market value of the token being around $1 billion, the buyback program will reduce the monthly supply by 0.7%.

MakerDAO and the DeFi Ecosystem:

MakerDAO stands out as one of the largest and oldest credit protocols in the DeFi world, enabling the issuance of $4.6 billion worth of DAI stablecoins. The protocol is governed by a decentralized autonomous organization (DAO) where MKR holders vote on governance proposals. #DAI

Maker invests DAI's reserve assets in traditional investment products, bank credits, government bonds, and other areas to generate income. Additionally, MakerDAO plans to upgrade DAI and MKR tokens, divide its structure into smaller, self-governing entities called SubDAOs, and allow these organizations to issue their own tokens in a major transformation process. #MakerDAO

In Summary:

With the impact of the buyback program, MakerDAO's MKR token has reached nearly a one-year high, experiencing a significant price increase. This noteworthy development in the DeFi ecosystem continues to be closely monitored by the cryptocurrency community. MakerDAO's innovative approach and the value surge in MKR tokens provide promising signals for the future of the DeFi world. However, it is essential to consider the volatility of the cryptocurrency market, and investors should conduct careful analysis before making trading decisions. #MKR $MKR