MakerDAO CEO Issues Strong Plea to Help Fix Climate Change

MakerDAO CEO Issues Strong Plea to Help Fix Climate Change

Blockchain
October 6, 2021 by Editor's Desk
594
The world is constantly battling one of its biggest crises, which is climate change, and leaders around the world are combining forces to seek a way to address this grave danger posing the entire human race. Crypto giant Rune Christensen and the founder of MakerDAO, believe he has a great tool to assist in man’s
MakerDAO CEO Issues Strong Plea to Help Fix Climate Change

The world is constantly battling one of its biggest crises, which is climate change, and leaders around the world are combining forces to seek a way to address this grave danger posing the entire human race. Crypto giant Rune Christensen and the founder of MakerDAO, believe he has a great tool to assist in man’s biggest problem, and in an essay, he titled, “The Case for Clean Money.”

 

In his essay, Rune explained that DAO’S stable coin. DAI could be the game-changer the world needs. He outlined the vision for the coin to be issued to drive investment in clean energy at a massive scale around the world.

 

DeFi, the Way Out

Decentralized finance is one of the most popular terms within the crypto world, but Rune believes it can serve a higher purpose that can save humanity and ensure we can live in a healthier environment. Several DeFi protocols can come together and use DeFi to fund investment that would tackle climate change is seen as one of the best and smartest options for investors with long-term benefits. Rune wrote, “ “Grasping climate alpha early is likely the largest economic opportunity that will exist over the next decades because of how bad things are getting – like discovering bitcoin in 2010 but at the macro level.”

 

Rune opined that the very goal of Maker has been to use blockchain technology to ensure the benefit of society and humanity at large and financial inclusion has been the means of achieving this. He noted that they experienced success with DAI adoption in Argentina and are hoping to achieve more and solve the problem hindering some nations’ access to finance, which could be used to develop and transform their society.

 

Climate Change to Change the World

According to Rune, the world is already feeling the harsh effect of climate change in our day-to-day living and is currently manifested as floods, wildfires, and many other disasters affecting people in the world. He echoed the beliefs of scientist that business as usual won’t be the same in the next ten years which means urgent steps needs to be taken to address this.

 

Rather than address the issue of climate changes currently wreaking global havoc, Rune wrote that the world powers are doing little to solve the problem but are still amplifying the challenge. He wrote, “despite all the natural disasters that should be raising the alarms in favour of climate action. Both China and the US – the world’s largest emitters – are still accelerating fossil fuel use, and most of the developing world continues to fundamentally rely on expanding fossil fuel capacity to drive growth and help their people escape poverty.”

 

The Maker Solution

MKR holders decided on five principles to govern MakerDAO during its inaugural governance vote in 2018, one of which was to use capital assets to support sustainable business practices. Explaining how Maker can render help, Rune wrote, “Maker and Dai can coordinate the global build-out of sustainable energy pathways by funnelling billions of dollars into senior credit positions for projects that will build solar farms, wind turbines, batteries, recharging stations and other cost-efficient renewable energy solutions, as well as their supply chains, sustainable resource extraction and recycling.”

 

According to Rune, if the DAO can swiftly organize around climate action, it might reallocate $3 billion in Circle and Coinbase’s fiat-backed stablecoin, USDC, to environmental, social, and governance bonds.

 

Rune foresees a future where money and other forms of transactions would fail, but Ethereum will continue to thrive. He explained that the Ethereum blockchain is built for human coordination and resilience, and when the world begins to deal with the impact of climate change, Ethereum will aid financial markets to facilitate mitigation.