SubDAO divides and conquers, everything grows, will Maker usher in a new era of growth?

Source: Rune Christense, Maker Founder

Compiled by: Karen, Foresight News

SubDAO is considered one of the major plans in Maker's ultimate battle roadmap. Maker founder Rune Christensen recently elaborated on the vision and launch details of SubDAO. Foresight News has compiled this information.

Despite the current downturn in the cryptocurrency market, Maker continues to expand its dominance in the DeFi space. Other projects are hardly worth mentioning. Maker has consistently performed well, with the supply of Dai increasing by 400 million just last month.

The time for SubDAO to shine is coming, as SubDAO will transform the game rules in the crypto space.

Before launching 4 SubDAOs at the beginning of next year, Maker will lay the foundation for SubDAO's marketing and growth through a new simplified brand (name to be determined). Maker will focus on providing a simple, user-friendly, and enjoyable experience for new and existing users.

The biggest challenge Maker faces is that the system has grown so large, important, and complex that it cannot be effectively governed as a single entity.

The future will belong to SubDAOs. SubDAOs are smaller but highly flexible and independent, allowing for parallel development and experimentation. Each SubDAO is unique, and its community can spontaneously organize to develop a brand and culture that suits its business.

After the new brand is launched, Maker will simultaneously launch 4 SubDAOs, each with its own token, distributed through mining to holders who upgrade their Dai to "NewStable." The upgrade does not add extra risk, and users can easily unlock it back to Dai.

SubDAO is a win-win choice, maintaining autonomy and flexibility for innovation while fully benefiting from Maker's vast economic scale, user base, reputation, governance tools, and other advantages.

In addition, SubDAOs will share resources from the contributor ecosystem incubated by Maker. Currently, over 30 companies contribute to and empower the Maker ecosystem, including 5 dev shops focused on Maker-level EVM/Solidity. This shared talent pool means that each SubDAO will be up and running immediately.

Regarding the highly anticipated SubDAO token distribution, the initial tokens will be allocated to users who upgrade their Dai to "NewStable," with no insider allocation. This provides ordinary users with a fair and permissionless opportunity to earn mining rewards. Token holders will decide the future direction of SubDAOs and which SubDAO contributors to fund.

According to the MakerDAO official website's SubDAO tokenomics, the initial supply of tokens for each SubDAO is 2.6 billion, of which 400 million SubDAO tokens are reserved to incentivize SubDAO employees or contributors. In 2 years, 200 million SubDAO tokens will be sold in DAI to fund the SubDAO treasury. In the first 10 years of the SubDAO lifecycle, 2 billion of each SubDAO's tokens will be allocated for liquidity mining. In the first two years, the genesis mining rate will be 500 million SubDAO tokens per year, with 350 million SubDAO tokens for NewStable mining users and 150 million SubDAO tokens for NewGovToken mining. In the next two years (third to fourth year), the genesis mining pool rate will be 250 million SubDAO tokens per year, with 175 million SubDAO tokens for NewStable mining users and 75 million SubDAO tokens for NewGovToken mining users.

The 4 initial SubDAOs each have their own characteristics:

• SakuraDAO will build an engaging social community, achieving self-sustainability by driving the growth of the Sakura revenue platform. SakuraDAO is open to all users and rooted in the Japanese cryptocurrency community, funding games, events, and more.
• SparkDAO focuses on being at the forefront of DeFi innovation, applying Maker's scale to DeFi products that users genuinely want to use. Spark Protocol is a new lending engine that has already attracted a total locked value (TVL) of $450 million.
• Quant is a SubDAO focused on real-world assets (RWA), leveraging technology and scale to create value by combining Maker's billions with tokenized assets.

• Qual is also a SubDAO focused on RWA and finance, such as more complex, smaller-scale private credit, but with higher yields. Qual is more oriented towards the Chinese crypto community and Southeast Asian communities.

Of course, it will take some time before the SubDAOs are ready. But once launched, they will undoubtedly transform the entire crypto industry and become a true engine of growth.

In terms of specific timelines, Maker plans to launch NewStable and NewGovToken at the beginning of next year, and launch SubDAO tokens in the second quarter of next year, allowing users to earn mining rewards with NewStable.