MakerDAO establishes 4 subDAOs: What impact does it have on the price of MKR?
On September 14th, MakerDAO co-founder Rune Christensen introduced MakerDAO's future plans at the Token 2049 conference. He mentioned that MakerDAO will establish 4 subDAOs, each with specific applications or responsibilities (DAO refers to decentralized autonomous organizations, while SubDAO stands for sub-decentralized autonomous organization). Here are the details:
MakerDAO is a decentralized autonomous organization on Ethereum that primarily offers decentralized lending services and created the first decentralized stablecoin, DAI. The decision to split into 4 subDAOs indicates a new development strategy for MakerDAO. What does this mean?
By splitting into four entities, with each focusing on a specific category or portion of business or services, MakerDAO can adopt a more targeted development approach, operating more efficiently and deeply within each area. This strategy may enable the discovery of more opportunities or capturing high-quality users. In the long run, this split and specialized division of labor provide a clearer and more defined structure compared to a generalized model.
However, it's important to note that MakerDAO has only proposed these development plans, and their actual execution will determine their effectiveness. If each SubDAO can fulfill its role, especially with Quant developing RWA, which is a popular business type in recent times and even potentially becoming a new trend, it could be a positive factor for MKR coin.
Investors generally support and approve of these development plans, which can be observed through the price trend of MKR. Recently, the daily chart of MKR has formed a four consecutive bullish candles, indicating a stronger bullish sentiment and the possibility of rising to $12,300 or even $1.3 million. However, breaking through this level may prove challenging.
For short-term MKR investors, trading within the range of $1,000 to $1,300 can be considered for volatile trading, but it is crucial to set stop-loss and take-profit levels at key resistance and support levels. It is important to avoid holding positions with a speculative mindset.
MKR Daily Price Chart, Source: TradingView.
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
