Rune Christensen, the founder of MakerDao has recently asked the community members to make a decision regarding DAI’s depegging.
DAI is a USD-pegged stablecoin backed by Maker (MKR) and Christensen has called for the community members to decide if DAI should be depegged from the USD.
He has suggested that he is dangerously considering the depegging of USD from DAI. Christensen has stressed that following the depegging, they should get into Ethereum (ETH).
However, the founder of the Ethereum blockchain, Vitalik Buterin has made a statement against the idea proposed by Rune Christensen.
Vitalik Buterin stated that the idea proposed by Rune Christensen is not a good one. He stated that it would be a terrible idea for DAI to depeg itself from the USD.
Banteg’s Note to the Community
Banteg, the core developer at yearn.finance (YFI), shared a note with the DAO community through the Discord channel of the DAO platform.
He revealed what Rune Christensen proposed to the DAI community. According to the proposal, it is a serious consideration that DAI must be depegged from the USD.
Christensen added that in the future, it would become inevitable for them to carry on with DAI being pegged with the USD.
Therefore, it is very important that they realize this right away and make the necessary change to avoid any major losses in the future.
Christensen Referred to Tornado Cash
The founder of the DAI network referred to Tornado Cash, a popular mixer that was recently sanctioned by the US Treasury.
It was the beginning of the running week when Tornado Cash, a cryptocurrency mixing service powered by Ethereum immediately banned. The authority that banned the service was the Office of Foreign Assets Control (OFAC).
Right after the banning of Tornado Cash, many community members admitted that such services would prove to be very easy for the bad actors. They can use such services to launder funds.
However, there were those who argued that it was important to have such services onboard. This is because such services are important to offer users privacy and apps such as Tornado fulfill that very requirement.
Therefore, many community members stated that the recent banning of Tornado Cash by the OFAC is like welcoming a crisis in the regulations.
Tornado Cash’s Ban Impact
Right after the ban was implemented, Circle froze its service for USD Coin (USDC). USDC is a stablecoin issued by Circle, and the coin is pegged with the USD.
The USDC Circle froze were on Tornado Cash and they valued at $75,000. Research shows that almost 50% of the total DAI is backed by the USDC.