Original Author: rune
Original source: forum.makerdao
Original title: The 5 phases of Endgame
Compilation of the original text: Lu Jue Lin, GWEI Research
Endgame is a major update to MakerDAO designed to improve efficiency, resilience, and engagement. Endgame leverages fine-tuned AI tools, applied to an open, scalable process, to create a strong governance balance that allows for the growth of permissionless SubDAOs and parallel product development, building an ever-emerging, community-driven ecosystem.
Endgame's short-term goal is to become the largest and most widely used stablecoin project within three years, and to ensure that its growth is based on a self-governing, vibrant DAO economy, ensuring that its growth can continue to accelerate, safely reaching any size, without Putting Governance Equilibrium at Risk.
This post outlines the roadmap for the sweeping changes Endgame will bring to Maker, along with the upcoming five successive launch phases.
Phase 1: Beta Release
Endgame's first product launch will focus on establishing a new unified brand for the ecosystem and will arrive in a few months.
Maker and Dai are established and trusted names in the cryptocurrency space. Unfortunately, they have drawbacks, including having two separate brands rather than one coherent concept. The Endgame transformation is an ideal time to address this fundamental issue with a comprehensive rebrand and new website that properly communicates and embodies Endgame's vision of building resilient, parallel governance through an AI-assisted process to secure stablecoins and the future of DAOs.
Crucially, Dai and MKR will not be changed. You can continue to use and hold these tokens and they will be kept forever.
Dai and MKR can be directly upgraded to their new versions, NewStable and NewGovToken (final name will be revealed along with new brand and website).
NewStable will be a new ERC 20 wrapper of the same underlying stablecoin as Dai. Its main unique features are:
A total of 10 million NewGovToken native farms of NewGovToken (equivalent to 8333 MKR per year) will be available starting from Phase 1: Beta launch.
From Phase 2: SubDAO launch, each SubDAO native farm can earn a total of 35 million SubDAO tokens.
The new Allocator Vault system will directly allocate large amounts of NewStable and Dai collateral, seeding liquidity for NewStable on Uniswap and other major DEXs. The goal is to deploy enough assets that NewStable will have more on-chain liquidity than Dai from the moment of launch.
NewStable's reachability reward system will reward those platforms and protocols that integrate NewStable.
Dai users can upgrade to NewStable instantly and unlimitedly at no cost, or unblock back to Dai, the ratio is 1:1.
NewGovToken will be a rebranded version of MKR with a larger supply.
MKR can be upgraded to NewGovToken by rebranding to 1200 NewGovToken per 1 MKR.
At Phase 1: Beta launch, NewGovToken will activate the Smart Burn Engine, which will use all protocol surplus over 50 million to accumulate NewStable LP tokens against NewGovToken.
In Phase 3: Governance AI Tools, NewGovToken will provide token-gated access to a powerful governance AI tool system, enabling NewGovToken holders to easily summarize and verify governance rules and processes, or generate new aligned governance proposals.
At Phase 4: Governance Participation Rewards, NewGovToken will be able to Lockstake in the Sagittarius Lockstake Engine to receive 30% of protocol revenue as NewStable rewards or SubDAO token rewards (15 million tokens per SubDAO per year).
MKR users can upgrade to NewGovToken instantly and unlimitedly at no cost, or unblock back to MKR with a fixed ratio of 1:1200. US IP and VPN users will be geo-blocked from accessing all forms of farming and yield opportunities with NewStable and NewGovToken.
The name of the new brand, new website and new token is being developed through the accessibility governance process and will be revealed before the Phase 1: Beta launch. The goal is to simplify the brand, position it as the underlying stablecoin product, and highlight its unique value proposition: a token capable of farming DAOs powered by AI governance.
Phase 2: SubDAO launch
Following the Beta launch, Endgame's key product launch is the first release of 6 Maker SubDAOs and their NewStable token farm.
SubDAOs serve as decentralized, specialized divisions within MakerDAO. They build their own unique governance processes that enable rapid parallel growth, specialization, and decision-making. By delegating day-to-day complexity to SubDAOs, MakerDAO dramatically simplifies the workload and complexity that Maker Governance needs to manage. The main tasks of SubDAOs include user acquisition and maintenance of the decentralized front end. In addition, SubDAOs are divided into two categories: FacilitatorDAOs and AllocatorDAOs.
FacilitatorDAOs exclusively run DAOs governance processes and rule sets according to their specifications, and they will be penalized if the rules they are responsible for are broken or not properly enforced. In Phase 2: SubDAO launch, 2 FacilitatorDAOs will be released and their genesis tokens will be distributed through the NewStable farm.
AllocatorDAOs specialize in allocating NewStable collateral, handling decision-making and operational efficiency at the edge, and experimenting with innovative products and growth strategies. In Phase 2: SubDAO launch, 4 AllocatorDAOs will be released and their genesis tokens will be distributed through the NewStable farm.
MakerDAO has never issued or generated Dai or NewStable itself, and in Endgame it will slowly prepare to hand over maintenance and control of the native vault engine to AllocatorDAO. Instead, long-term collateral distribution is primarily via AllocatorDAOs, which will use Maker Protocol to generate NewStable in large quantities at a benchmark rate through special Allocator Vaults, and then distribute NewStable to other DeFi protocols, real-world assets, or their own vault engines.
AllocatorDAOs bears all collateral listing costs, oracles, maintenance, upgrades, legal costs, credit risk assessment costs, and other related expenses. They also maintain junior capital, taking all collateral risk for the first loss. In return, AllocatorDAOs can charge their users a spread above the base rate to compensate them for their work and risk.
All SubDAOs reuse key governance processes and tools from MakerDAO to streamline their operations, and since they share access to core AI tools for governance provided by MakerDAO, they can maintain high-quality governance with a relatively small and amateur community.
By delegating most of the complexity and risk away, Maker Governance can eliminate nearly all of the cost and complexity associated with day-to-day operations, and only focus on mitigating tail risk through its slow-moving, reliable governance process.
Incentives for SubDAO and NewGovToken holders are aligned through the mutual economic mechanism of their governance tokens, and the distribution of SubDAO governance tokens to NewStable users and NewGovToken holders.
The 2 FacilitatorDAOs each receive 5,000,000 NewGovToken (equivalent to 4166 MKR, or approximately 0.42% of the total NewGovToken/MKR supply) into their treasury each year.
The 4 AllocatorDAOs each receive 4,000,000 NewGovTokens per year (equivalent to 3333 MKR, or roughly 0.33% of the total NewGovToken/MKR supply).
These underlying token offerings provide SubDAOs with basic funding for operations, expansion, and development.
The residual income earned by SubDAOs is used to provide liquidity for their governance tokens, and if SubDAO token holders can effectively use the governance process and AI tools at their disposal to generate residual income, then over time, it will will become more fluid and valuable.
These 6 SubDAOs were initially named with codenames from the numbers ZERO to FIVE, and were then renamed by their new community to match the new, unique brand identity that the community has jointly developed.
To prepare the community for the upcoming token and governance launch, the SubDAO Forum has been created to allow the community to begin to form. FacilitatorDAO Forums: ZERO 4, ONE and AllocatorDAO Forums: TWO 2, THREE, FOUR 1, FIVE.
Phase 3: Release of Governance AI Tools
Following the launch of SubDAOs, the Maker ecosystem will begin a major push to produce production-grade AI tools for governance monitoring and improvement.
Alignment artifacts are governance rulebooks built as a unified data structure that encompasses all principles, rules, processes, and knowledge of the entire MakerDAO ecosystem. This data is optimized for specialized governance AI tools that modify, improve, generalize and explain alignment artifacts. The use of AI tools helps level the playing field between deep players and more fringe community members, enabling anyone to participate in high-level discussions with all relevant facts and nuances available, and the ability to audit and verify internal decisions and actions of people.
Governance AI tools continuously improve the alignment artifacts, making it a powerful "ecosystem intelligence" that systematically accumulates knowledge, experience, examples, and data and keeps them in optimized data structures for later use. This enables DAOs to learn from experience and steadily improve their processes and decisions over time without requiring leadership or centralized authority.
Atlas is the immutable underlying infrastructure for alignment artifacts. Its articles are immutable to protect minority token holders and reduce the risk of AI-assisted governance deviating from its intended purpose, or deviating actors attempting to centralize the ecosystem. The original rules of Atlas are designed to perpetuate the system so that it remains safely in a decentralized equilibrium that generates economic value and public good.
Alignment Voting Councils (AVCs) are open governance participation structures where ordinary NewGovToken holders receive detailed status reports and domain-specific professional advice utilizing a professional workforce and the most powerful governance and AI tools available in the ecosystem . Based on these inputs, AVCs develop improvement proposals on key decisions in a standard format known as the Alignment Governance Strategy.
A key aspect of Maker's governance resilience is a focus on the public interest, which attracts high-value ecosystem players aligned with the public interest mission and helps balance the inherent principal-agent risks of humans or AI embedded in the governance process .
The Purpose Fund achieves a public interest focus by funding the development of free, open-source AI models and free AI tools that can help socially high-impact industries and projects harness the efficiency gains of AI and make them more self-sustainable Impact. This both helps MakerDAO improve its own AI tools for governance, while also fulfilling its goals for the public good.
Phase 4: Release of Governance Participation Incentives
Once the governance ecosystem becomes proficient at managing DAOs through governance AI tools, the Sagittarius Lockstake Engine (SLE) will be ready to launch.
SLE incentivizes NewGovToken holders to participate deeply in governance by locking their NewGovTokens and delegating their voting rights to an aligned governance strategy maintained by AVCs.
This form of governance participation takes place through a user-friendly, gamified front-end for easy access and is similar to the process of choosing a party in a multi-party democracy (voting rights are weighted by token holdings).
As rewards for work to improve and secure the governance process, SLE users will receive either NewStable revenue (the remaining 30% of the protocol) or SubDAO tokens (30% of the SubDAO token distribution, initially 15 million tokens per SubDAO per year).
SLE has a 15% exit fee, which will be burned from locked NewGovTokens when the user exits. This commitment motivates people to solve problems through governance tools, such as direct participation in AVCs, rather than giving up when faced with challenges.
Beginning with Phase 4: Governance Participation Rewards release, SLE will provide a one-time bootstrap reward boost for the next 6 months. The reward boost will be equal to the SubDAO tokens that SLE users would have been able to farm during the period between Phase 2 and Phase 4, when only NewStable users were able to farm SubDAO tokens. These additional tokens will be distributed to SLE users over a period of 6 months, in addition to the standard reward of 15 million tokens per year, e.g. if there are 6 months between phase 2 and phase 4, then the first 6 SLE The monthly farming rate will be 30 million tokens per year.
With the deployment of the Sagittarius Lockstake Engine, Phase 4: Governance Participation Reward Release will also launch 6 farms for SubDAO tokens that will be able to farm 4,000,000 NewGovTokens per year (equivalent to 3333 MKR, approximately 0.33% of the total NewGovToken/MKR supply). Users of NewGovToken farms will be encouraged to participate in their respective SubDAO governance processes, but this is not required, and there will be no exit fees or other restrictions.
Phase 5: NewChain launch and final end state
After the launch of the Sagittarius Lockstake Engine, the next and final step is to deploy NewChain (the actual name will be based on the new brand). The launch of NewChain will be the final step in the end-game launch process, and once deployed, MakerDAO will permanently enter an end-state in which further major changes will no longer be possible, and its core processes and balance of power will remain decentralized and self-reliant forever. Persistent and immutable.
NewChain will be a blockchain that hosts all of SubDAO tokenomics and MakerDAO governance security backend logic. This means that on Ethereum, NewStable and NewGovToken as well as Dai and MKR will continue to function normally, the only change will be that they will be protected by a governance backend operating through a secure, state-of-the-art bridge.
The ecosystem focus of MakerDAO and SubDAO will continue to be the Ethereum ecosystem and Ethereum L2, as this is where users and composability reside, and NewChain will be designed around this reality.
A key feature of NewChain is the ability to use hard forks as a governance mechanism to recover from catastrophic governance disputes, for example, when an attacker with a majority voting power forces a minority of token holders to shut down the protocol, or when an attacker abuses When the ability to turn off the protocol.
This provides the last level of governance security for users, businesses and protocols that rely on Dai Stablecoin and NewStable, even in the most extreme governance attack scenarios, with minimal impact on their user experience and no threat to their funding or stability.
NewChain will also have some additional features optimized as a backend for AI-assisted DAO governance processes and users of AI tools, including smart contract generation, state rent, and MEV capture within the protocol.
The native token used to pay for gas and state rent will be Savings-NewStable (a tokenized version of NewStable that actively earns savings rates), and will be consensus-staked with NewGovToken via the Sagittarius Lockstake Engine.
Endgame's neuro-token economic logic will be implemented as part of the protocol itself and will unlock a variety of new features, including:
Summarize
Summarize
Endgame will simplify and parallelize the Maker ecosystem, introducing a new unified brand identity and a flagship launch of 6 new SubDAOs through which users can farm, leading to permissionless innovation and collateral distribution. Endgame will also introduce powerful AI tools to help less hardcore governance participants grasp all the details of the system and what is going on, and provide a governance participation reward system that incentivizes participation through farming rewards. The final step for Endgame will be to deploy a new blockchain that is tightly connected to Ethereum while enhancing the governance security of the ecosystem and implementing all of Endgame's advanced features and token economics.
Disclaimer: This article does not constitute investment advice. Users should consider whether any opinions, viewpoints or conclusions in this article are in line with their specific conditions, and abide by the relevant laws and regulations of the country and region where they are located.
