An Early Peek into Maker’s SubDAO Vision

MakerDAO, the protocol that issues the largest decentralized stablecoin DAI, will undergo a phased revamp that primarily aims at increasing the efficiency of its governance process. Its five-phase transition roadmap was covered in a previous research piece.

In particular, the second phase would see the introduction of SubDAOs, each acting as a semi-independent sub-community with its own governance responsibility and governance token. Despite its structural novelty in the field of decentralized autonomous organizations (DAOs), SubDAOs seem to be a reasonable next step for MakerDAO, which has grown rapidly in recent years as DAI’s market cap peaked near $10 billion and currently sits at $3.8 billion.