In a recent comprehensive proposal titled “Clean Money,” Rune Christensen, the founder of MakerDAO, introduced a transformative token economic system named the Sagittarius Engine. This initiative aims to unlock the full potential of decentralized finance (DeFi) by aligning Dai’s collateral system with sustainability and climate resilience. The proposal emphasizes that Dai must be backed by sustainable or climate-adaptive assets to mitigate environmental degradation and associated economic risks.
Christensen argues that for MakerDAO to realize its vision, it must engage in yield farming and fundamentally redesign MKR’s tokenomics. The Sagittarius Engine is designed to reward long-term MKR holders who lock their tokens, creating a sustainable and economically aligned ecosystem.
The Vision: Clean Money and Climate Resilience
MakerDAO has always aimed to leverage blockchain technology to deliver tangible benefits to society. Initially focused on financial inclusion—evidenced by Dai’s adoption in Argentina—the protocol has excelled as backend infrastructure. However, bridging the last mile to end-users has proven challenging.
Today, nearly half of all Dai generated from ETH comes from just five vaults, some of which are CeFi companies offering regulated loans. This demonstrates Maker’s potential as financial infrastructure capable of reshaping other institutions. By positioning itself this way, Maker can help repair the broken incentives at the core of the global financial system.
The Climate Crisis: A Systemic Threat
Climate change represents one of the most severe threats to global stability. Scientific evidence from the IPCC and other bodies indicates that without drastic action, the world faces irreversible environmental collapse within a decade. Positive feedback loops—such as permafrost melt and wildfires—are already accelerating global warming.
Despite increasing disasters, global coordination remains inadequate. Major economies continue to rely on fossil fuels, and financial systems prioritize short-term gains over long-term sustainability. The economic and social impacts of climate change—such as agricultural failure and mass displacement—will strain governments and alter geopolitical landscapes.
DeFi as a Solution
DeFi, born out of the 2007 financial crisis, offers transparency, stakeholder governance, and decentralized infrastructure. These attributes make it uniquely suited to address climate-related financial challenges. By leveraging blockchain, Maker can ensure that all collateral backing Dai is verifiably sustainable and climate-resilient.
This approach transforms Dai into a coordination tool—enabling individuals and companies to directly impact environmental sustainability. The crisis demands a wartime-level response: every aspect of the global economy must change, either proactively or through forced adaptation.
The Three Pillars of Maker’s Collateral Strategy
To support the Clean Money vision, Christensen proposes a collateral system based on three flagship asset types:
1. Sustainable Collateral
Maker can direct billions toward financing renewable energy projects—solar farms, wind turbines, batteries, and charging stations—along with their supply chains. This not supports sustainability but allows Maker to develop expertise in a commoditized, scalable market.
Using trustee-based real-world asset (RWA) models, Maker can safely expand its RWA exposure to hundreds of billions of dollars, fully compliant with financial regulations. Initiatives like 6s Capital already demonstrate this potential.
2. Resilient Collateral
Climate resilience is critical. Many assets are mispriced because traditional markets fail to account for climate risks. The concept of “climate alpha” suggests that early movers in climate-resilient investments will capture significant economic opportunities.
Dai must be backed by assets resistant to climate effects—diversified across socially and politically stable countries capable of weathering economic shocks. These “super countries,” such as New Zealand, Canada, Switzerland, and the UK, can serve as havens during crises.
3. Decentralized Collateral
Ethereum and ETH-based assets remain fundamental to Maker’s strategy. Once Ethereum transitions to proof-of-stake, it will become an energy-efficient blockchain. Maker should prioritize accumulating ETH and ETH-derived collateral, such as LP tokens or staked assets.
Additionally, integrating with DeFi platforms like Aave and Compound via direct deposit modules can enhance yield generation and strengthen Dai’s market position.
Introducing the Sagittarius Engine
The Sagittarius Engine is a token economic system designed to replace the current buy-and-burn mechanism with a more dynamic model. It draws inspiration from advanced tokenomics pioneered during DeFi Summer.
Key Mechanisms
- Long-Term Locking Benefits: MKR holders who lock their tokens gain access to borrowing opportunities against a Dai pool funded by protocol surplus. Loans feature attractive rates (equal to the DSR) and lenient liquidation terms.
- Voting Multipliers: Locked MKR may receive multiplied voting power, amplifying the influence of committed holders.
- MKR Issuance: A new cap of 3 million MKR is proposed. Issuance will fund protocol growth and rewards, mimicking successful models in newer DeFi protocols.
The system aims to create a “capital black hole” effect—continuously attracting and locking MKR while aligning incentives for long-term participation.
Impact NFTs
The Sagittarius Engine includes an NFT component to tokenize real-world climate impacts. Each sustainable project—like a wind turbine or solar farm—can be represented as an Impact NFT, complete with real-time data from Maker Oracles.
These NFTs can incorporate artistic elements and gamification, enhancing their social and monetary value. Trading royalties can fund charitable projects, creating a virtuous cycle of impact and investment.
Governance: The Sagittarius Age
Maker governance must evolve to become more decentralized and efficient. Christensen proposes a shift toward a “governance ice age”—a stable, rule-based system that minimizes disruptive proposals while ensuring adaptability.
Decentralized Voter Committees (DVCs)
DVCs are transparent, self-organized groups of MKR holders and delegates. They operate with full transparency, focus on specific expertise areas, and interact formally with core units and other actors. Their roles include:
- Monitoring governance dynamics and facilitator performance.
- Generating proposals and providing opinions on existing MIPs.
- Ensuring accountability and transparency across the protocol.
World Map Framework
The “World Map” is a comprehensive framework outlining all processes, rules, and norms required for Maker governance under the Sagittarius Ice Age. It aims to provide stability for the next 50 years, supporting the Clean Money vision while allowing for controlled innovation.
Frequently Asked Questions
What is the Sagittarius Engine?
The Sagittarius Engine is a new token economic system for MakerDAO that rewards long-term MKR holders with borrowing benefits and voting power multipliers. It replaces the current surplus mechanism and aims to align incentives for sustainable growth.
How does Dai become “clean money”?
Dai becomes clean money by being backed primarily by sustainable and climate-resilient assets. This includes renewable energy investments, climate-adaptive real-world assets, and decentralized crypto collateral like ETH.
What are Impact NFTs?
Impact NFTs are tokenized representations of real-world climate projects funded by MakerDAO. They include real-time impact data and artistic elements, creating tangible value from positive environmental externalities.
How does governance change under the Sagittarius Age?
Governance becomes more stable and decentralized through Decentralized Voter Committees (DVCs) and a comprehensive World Map framework. This reduces disruptive proposals while maintaining flexibility for long-term adaptation.
What is the role of MKR issuance in the new system?
MKR issuance funds protocol growth and rewards, similar to models in newer DeFi projects. A new cap of 3 million MKR ensures controlled inflation, with proceeds directed toward treasury and ecosystem development.
How can I participate in the Sagittarius Engine?
MKR holders can participate by locking their tokens in the system to access borrowing benefits and increased voting power. Engaging with DVCs and governance proposals is also encouraged.
Conclusion
The Sagittarius Engine represents a bold step toward aligning DeFi with global sustainability goals. By combining a compelling vision with advanced tokenomics, MakerDAO can drive meaningful climate action while achieving robust economic growth. The proposal underscores the potential for blockchain technology to create a more resilient and equitable financial system.
For further reading on token economic models and their applications, 👉 explore advanced DeFi strategies.