8/ To become the Unbiased World Currency, Maker is willing to drop $DAI's dollar peg.
Yep, this means, $DAI will free float away from 1:1 USD by gradually changing its price over time according to the Target Rate.
9/ The positive TR increases demand for Dai and reduces supply of Dai.
While a negative TR has the opposite effect: It reduces demand for Dai, and increases supply.
This should make DAI stable without the need of a 1:1 dollar peg.
10/ Why?
The Endgame Plan assumes eventual regulatory crackdown on RWA collateral, which includes $USDC.
So it prioritizes resilience against physical attacks over maintaining the 1:1 USD peg.
11/ $DAI is currently used as a decentralized alternative to $USDC or $USDT.
Thus here is a real possibility, @RuneKek assumes, that as many as 50% of the protocol users will leave in a short period of time after free floating is first activated.
12/ Rune also proposes a Protocol Owned Vault mechanism, similar to $FEI's Protocol Control Value.
The POV is a Maker Vault only usable by Maker Governance that holds ETHD and potentially other decentralized assets as collateral, and then uses it to generate & stabilize Dai.
13/ The Endgame Plan also aims to diversify collateral that includes:
• Decentralizes assets: $ETH, $UNI, $MKR etc.
• RWA: centralized stablecoins, renewable energy projects, cross-chain bridge tokens or Physically Resilient RWA...
14/ For example, a Physically Resilient RWAs are like renewable powered drone ships that can be disabled and re-enabled through on-chain governance and operate long term in international waters😎
15/ The Endgame Plan assumes a possibility that there will be a significant deterioration of regulatory security alongside a global economic and social decline.
To adapt, survive and recover Maker will have 3 'stances'.
16/ Pigeon Stance where there is no limit to RWA exposure and Dai remains pegged 1:1 with USD.
As Pigeons are not afraid of humans, Maker can tolerate minimal regulatory threats to generate as much income from RWAs as possible.
Pigeon Stance lasts 2.5 years.
17/ Eagle Stance - Dai becomes free floating with a negative Target Rate.
Stance guarantees that Maker’s exposure to seizable RWA is limited to 25%.
To achieve this Dai can be unpegged from the dollar if necessary.
18/ Phoenix Stance where Dai no longer allows any RWA other than Physically Resilient RWAs.
It's the maximum resilience form, where Maker no longer allows easily seizable RWA as collateral.
19/ The Endgame Plan roadmap is broken into 4 major phases.
Pregame will launch within 12 months to build ETHD, launch 6 MetaDAOs, starts liquidity mining etc.
Yet the Endgame will not launch until 2030 or later.
20/ If you want to learn more, check @RuneKek posts on Maker Forum.