Daily Flash | MakerDAO CEO Proposes Timeline To Lose Dollar Peg, MicroStrategy Founder Gets Sued For Income Tax Evasion, Reddit Cofounder Launches $177M Crypto Fund

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Today's Headline - MakerDAO Co-Founder Lays Timeline for Free Floating DAI: Blockworks Report

CEO and co-founder Rune Christensen’s proposal on MakerDAO’s forum, submitted on Wednesday, calls for the decentralized autonomous organization (DAO) treasury to accumulate ether through its current investments for three years before cutting back on real world plays (RWAs) and reducing its exposure to “seizable” assets.

The proposal outlines three different “stances” for MakerDAO as the organization moves away from real world assets and DAI loses its dollar peg: Pigeon (maximum growth), Eagle (balance between growth and resilience) and Phoenix (maximum resilience at the cost of less growth).


Rune wrote DAI will detach from the US dollar — doing away with what’s known as the Price Stability Peg — only in the case of an “authoritarian threat.” Since the US Treasury sanctioned Tornado Cash in August and Circle blacklisted a host of USDC Ethereum addresses, Maker members have been sounding alarm bells that government interference could quickly torpedo DAI’s value.

However, the proposal outlined by Rune is under ongoing debate between “futurists” and “centralists”.

MakerDAO’s current split centers on what the protocol should do with its assets. The worldview shared by Rune and fellow “futurists” holds that a truly decentralized DAI can eventually replace fiat at a large scale, and government sanctions are a major threat to this mission.

On the other hand, “centralists” include venture capital investors who hope to expand the protocol’s real world credit facilities to make the DAO profitable.

It remains unclear which worldview is ascendant, but futurists received a boost in June when MakerDAO voted down the creation of a lending oversight committee that would have expanded the DAOs reach into RWAs. The vote was controversial, drawing accusations that a minority of Maker whales, including Rune, used large tranches of votes to shift the outcome.

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Chart of the Day - Bitcoin Number of Active Entities: Glassnode Onchain Report

As of this writing,
Bitcoin (BTC) is changing hands at around $20,014, down 0.55% in the past 24 hours,
while Ether (ETH) is trading at $1,576, or up 1.22% during the same period.

Major altcoins are showing a mix of gains and losses,
with Cardano (ADA) up by 1.46%,
Solana (SOL) -0.62%,
Polkadot (DOT) +1.64%,
Avalanche (AVAX) -0.91%,
and Cosmos (ATOM) +5.74%.

Notable gainers include:
Cube (AUTO) at $0.0902 (+27.10%),
Syscoin (SYS) at $0.161 (+21.29%),
Celsius Network (CEL) at $1.41 (+20.59%).

Notable losers include:
MXC (MXC) at $0.0732 (-12.38%),
Aleph.im (ALEPH) at $0.213 (-11.35%),
Lazio Fan Token (LAZIO) at $7.66 (-11.03%).

Ever since the rebound on Monday, Bitcoin (BTC) continues to show a rangebound trading pattern, as of Friday trading, without a catalyst, BTC is stuck between the monthly support of $19,858 and a daily resistance of $20,398.

The catalyst will likely come as the U.S. Department of Labor releases August’s jobs reports later today (12:30 UTC), which will show signs of a cooling job market more consistent with a contracting economy.

The current jobless rate stands at a historically low 3.5%, although a report Wednesday by payment processor ADP showing private employers adding a lower number of jobs to their payrolls than the average of the previous three months suggested some weakening in the jobs market.

According to The Block Research data dashboard bitcoin futures trading volume for August came in at $941.5 billion across exchanges. That's the first month it was under $1 trillion since December 2020 — when volumes were $970.1 billion — and the lowest since November 2020, when volumes were $779 billion.


Although BTC bulls have remained resilient above the support zone formed between the opening price of Monday ($19,558) and the monthly support of $19,858, there still wasn’t enough buying power to push the price above the aforementioned resistance zone towards the 12-Day EMA ($20,587).

Only if the bulls are able to hold above this resistance zone will we see a retest of the 12-Day EMA, and a break above the EMA will signal the bulls are attempting to retest a higher daily resistance level of $20,842.

On the contrary, the bears will likely continue to bring prices below the aforementioned resistance zone in hopes of successfully breaking the support zone formed between the opening price of Monday ($19,558) and the monthly support of $19,858 as they failed to do so yesterday.

If they succeed, the next support zone to keep in mind will likely be formed between a daily support level of $18,975 and the 141.4% Fibonacci extension level ($19,100) measured from Aug. 13 - 19.


As of this writing, ETH is currently trading within a resistance zone formed between the 12-Day EMA ($1,588) and a weekly resistance level of $1,611. A break above this zone will likely see the bulls attempt to push prices towards the 100-Day EMA ($1,714) which coincides with the height of Aug. 25 before the unexpected slump.

To invalidate this outlook, the bears will likely use the 20-Day EMA ($1,616) as a resistance level to bring prices back to the 38.2% Fibonacci level ($1,500) measured from Apr. 3 - Jun. 18.

If the bulls aren’t “buying the dips” at this level, then prices will likely be brought down to the monthly support level of $1,428 which forms a support zone with the 127.2% Fibonacci extension level ($1,385) measured from Aug. 14 - 20.

Notably, as mentioned earlier, the drop in bitcoin futures volume came as trading in ether futures boomed ahead of The Merge. Ether futures crossed $1 trillion for the first time since May 2021, when they reached $1.64 trillion. Trading volumes for the second-largest cryptocurrency by market cap were $1.05 trillion in August, up from $934.9 billion in July.

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Influencer of the Day - Bitcoin ‘Maximalist’ Michael Saylor Sued for Tax Fraud in DC: BeInCrypto Report

Michael Saylor, founder and former CEO of the software company MicroStrategy, is being sued by the District of Columbia, DC Attorney General Karl Anthony Racine, announced on Twitter.

The lawsuit is the first case that falls under DC’s “recently amended” False Claims Act, which encourages “whistleblowers to report residents who evade our tax laws by misrepresenting their residence” Recine said, hinting that there might be whistleblowers involved in Saylor’s case.

Under the False Claims Act, whistleblowers are awarded a mandatory reward of between 15% to 30% of the collected proceeds, provided that their original information results in a successful prosecution.

During the latest earnings call on Aug. 2, the company announced that Saylor was stepping down from his CEO position and transitioning to his new role as an executive chairman, where he would focus on Bitcoin acquisition strategy and other related Bitcoin initiatives.

MicroStrategy stock (MSTR) fell over 11% in the next two days following the announcement by Racine.

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Buzzes of Yesterday - #Helium Devs Want to Shift to Solana Blockchain, #OpenSea Rejects All Ethereum Forks, #Reddit Cofounder Launches $177M Crypto Fund

DeFi

Helium Developers Propose Shifting Network to Solana Blockchain

Compound discovers bug in new update, freezes cETH market

KyberSwap says it will pay 15% bounty if attacker returns $265K in stolen crypto

1inch announces 300,000 OP token airdrop for users on Optimism

Babylon Finance to shutter protocol after losing $3.4 million in Rari hack

NFTs & Metaverse

OpenSea Commits To 'Solely Supporting' NFTs On Proof-Of-Stake Ethereum Blockchain

Ticketmaster Partners with Dapper Labs' Flow Blockchain for NFT Tickets

Crypto bank Sygnum to open metaverse hub in Decentraland

Andreessen Says Its 'Can’t Be Evil' NFT Licenses Will Help Avoid Legal 'Ambiguity'

Business & Finance

Reddit co-founder’s VC firm Seven Seven Six To Launch $177M Crypto Fund

Snapchat’s Web3 Team Apparent Victim of 20% Downsize

Governments & Policies

El Salvador’s Bitcoin Beach to receive over $200 million in infrastructure investments

SEC and CFTC want help building new crypto reporting regime for hedge funds

California Crypto Licensing Bill Awaits Governor's Signature

Author: Gate.io Researcher Peter L.
This article represents only the researcher's views and does not constitute any investment advice.
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