What to Make of MakerDAO's Migration

The end is nigh. Or at least, "Endgame" is nigh. Blockchain protocol MakerDAO is in the final stage of its multi-year overhaul. "Endgame" will see MakerDao launch a native blockchain called NewChain, potentially based on Solana.

Should MakerDAO shift away from Ethereum to Solana, the move could spark controversy in the space due to the blockchain rivalry.

On Friday, MakerDAO co-founder Rune Christensen hinted the protocol is leaning towards Solana.

"After some research, I believe the Solana codebase should be considered as the basis for NewChain," Christensen tweeted. He explained that whilst EVM is "still the most important" when it comes to building for users, Solana is a "better fit" for Maker’s specialized backend needs.

In a blog post, Christensen further added that Solana's codebase has a proven track record of successful forks and its "technical quality."

Predictably, Ethereum fans have already expressed their disapproval. "fyi your userbase primarily has more allegiance to ethereum than to Maker/Dai," one disgruntled Ethereum backer tweeted. "should probably give that more weight than you currently are."

Ethereum co-founder Vitalik Buterin has consequently offloaded his remaining stake in MakerDAO tokens. According to blockchain data, Buterin sold 500 MKR tokens on CoW Protocol for 353 ETH.

Although Buterin has remained quiet about the sale, its timing would suggest the move was tied to Christensen's remarks. Buterin acquired 1071 MKR tokens for $905 each in April 2018 and last touched them in April 2021, when he donated 100 tokens to India's Covid relief fund.

As the largest decentralized finance lender, MakerDAO's blockchain shift is a significant move for the industry. By no means does it signal weakness in Ethereum or necessarily strengthen Solana's already-formidable reputation, but it does suggest that efficiency supersedes loyalty in the space. Ethereum fans might be frustrated with MakerDAO's decision but the Web3 world should appreciate the interdependence of blockchains, rather than subjecting to a couple of dominant players.

Elsewhere,

• Binance Asia-Pacific Head Steps Down Amid Regulatory Challenges:
  Leon Foong, the head of Binance Asia-Pacific, is parting ways with the world's leading crypto exchange. Foong, instrumental in Binance's growth in regions like South Korea, Thailand, and Japan, has reportedly resigned. This move follows a series of high-profile departures from the company, including chief strategy officer Patrick Hillman and general counsel Hon Ng. The company has been under the lens of US regulatory bodies like the Commodity Futures Trading Commission and the Securities and Exchange Commission, facing allegations of violating various regulations. Binance continues to challenge these claims while navigating regulatory challenges in other countries, including France, the Netherlands, Canada, and Australia.
• Gemini's Involvement in Genesis Bankruptcy: Gemini is actively positioning itself in the Genesis bankruptcy case. They're trying to line up with other creditors and have a say in the bankruptcy plan. Who said crypto was all about algorithms and codes? Sometimes, it's about good old-fashioned boardroom strategies.
• Ripple vs. SEC - The Saga Continues: The Ripple courtroom telenovela gets another episode! Ripple has just filed a motion opposing the SEC's appeal over that landmark XRP ruling. In a new court filing, lawyers for the San Francisco-based payments company say the exceptional requirements needed to warrant the approval of the regulator’s certification request for an interlocutory appeal are not present.
• ETF Application Withdrawal Shocker: In a plot twist that no one saw coming, asset manager Bitwise has pulled the plug on its Bitcoin and Ether ETF applications. Just when we thought crypto ETFs were the next big thing, this move has left the market scratching its head. Was it cold feet or a strategic pivot? Only time will tell, but for now, the ETF dance floor has one less participant.

Upcoming Events

Sunday, 10 September – Tuesday, 12 September: Ethereum Singapore 2023: Infinite Garden City conference and hackathon.

Wednesday & Thursday, 13-14 Sept: Token2049 - Use our exclusive promo code BLOCKHEAD to enjoy a 10% discount on tickets. Blockhead is an exclusive media partner for Token2049.

Friday, 15 September: Join the Stablecoin Summit at Raffles Hotel Singapore to hear from influential thought leaders such as Cynthia Wu (co-founder & COO, Matrixport), Lennix Lai (Global Chief Commercial Officer, OKX), and Hassan Ahmed (Country Director of Singapore, Coinbase) to debate the practical implementation of digital currencies for institutions, cross-border merchants, small business owners, and how this impacts the lives of the everyday consumer. Be part of the conversation with leading stablecoin providers and protocols, such as Circle, CELO, Mento Labs, Unitas, and Goldfinch. 
Use the code blockhead15 for 15% off tickets!

Blockhead’s Guide to the Top Token2049 Side Events

Get ready for Token2049, the biggest Pre-F1 rager happening on the little red dot. Follow our guide on the best side events and you’re bound to have a great time here.

BlockheadBlockhead