In a visionary deep-dive, MakerDAO founder Rune Christensen has introduced Clean Money—a bold new framework aimed at transforming MakerDAO into a purpose-driven decentralized autonomous organization (DAO) capable of addressing one of humanity’s greatest challenges: climate change. At the heart of this transformation lies the Sagittarius Engine, a next-generation token economic system designed to align long-term protocol growth with sustainable global impact.
This comprehensive plan reimagines how decentralized finance (DeFi) can serve as a force for real-world change—by backing DAI with climate-resilient, sustainable, and decentralized collateral while revolutionizing MKR’s utility through innovative incentives.
The Urgency of Climate Crisis and Finance’s Role
Climate change is no longer a distant threat—it's unfolding in real time. From intensifying wildfires to catastrophic floods, the signs are unmistakable. According to IPCC reports, we’re rapidly approaching irreversible tipping points such as permafrost thawing and forest die-offs, which trigger self-reinforcing feedback loops that accelerate warming.
Yet, despite overwhelming scientific consensus, global financial systems continue prioritizing short-term gains over long-term sustainability. Fossil fuel investments persist, often subsidized by central banks through quantitative easing programs lacking environmental, social, and governance (ESG) filters. This misalignment between capital flows and planetary health underscores a systemic failure—one that DeFi is uniquely positioned to fix.
"The core of the climate crisis is a financial problem: our economy cannot plan beyond the short term."
— Rune Christensen
DeFi’s transparent, stakeholder-governed, and incentive-aligned architecture offers a solution. By restructuring how value is stored, distributed, and governed, MakerDAO can become more than just a stablecoin issuer—it can evolve into a foundational layer for climate-positive finance.
A Purpose-Driven Vision: Clean Money
At the center of Christensen’s vision is Clean Money—a concept where DAI becomes the world’s first truly sustainable stablecoin, backed not by traditional debt or centralized assets, but by collateral that actively contributes to environmental resilience.
Unlike conventional “black box” financial systems, Clean Money emphasizes:
- Transparency: All operations visible on-chain.
- Sustainability: Collateral supports renewable energy and eco-conscious projects.
- Resilience: Assets withstand climate disruptions.
- Decentralization: Governance remains community-led.
This shift isn’t just ethical—it’s strategic. As younger generations grow increasingly climate-conscious (a recent study found over 50% believe humanity is doomed), demand for purpose-aligned financial tools will surge. DAI, powered by Clean Money, could capture this wave.
👉 Discover how blockchain innovation is reshaping sustainable finance today.
The Three Pillars of Sustainable Collateral Strategy
To realize Clean Money, MakerDAO must adopt a focused, forward-looking collateral strategy built on three flagship categories:
1. Sustainable Collateral
Channel capital toward high-impact green infrastructure—solar farms, wind turbines, battery storage, EV charging networks, and sustainable mining/recycling supply chains. These projects generate stable returns while reducing carbon emissions at scale.
Maker already has the tools: its trustee-based Real-World Asset (RWA) model enables compliant, secure deployment of billions into ESG-aligned ventures. With proper risk frameworks, this can expand exponentially.
2. Resilient Collateral
Not all assets are equally vulnerable to climate shocks. To future-proof DAI, a significant portion of RWA exposure should be diversified across climate-resilient nations—geographically stable regions with strong governance and low environmental risk.
Christensen refers to these as "super nations"—countries like New Zealand, Canada, Switzerland, and the UK, which offer political stability, climate adaptability, and regulatory compatibility with DeFi. Investing here ensures DAI maintains stability even during global upheavals.
This approach taps into what he calls "climate alpha"—the economic advantage gained by pricing in long-term climate risks before traditional markets do.
3. Decentralized Collateral
While RWAs provide real-world grounding, Maker must double down on its roots in decentralized assets—especially ETH and Ethereum-based derivatives.
With Ethereum’s transition to Proof-of-Stake (PoS), it has become one of the most energy-efficient blockchains. Holding ETH as collateral reinforces both ecological and network resilience. Additionally:
- LP tokens and staked ETH derivatives can enhance yield.
- Direct ETH reserves allow Maker to support and benefit from Ethereum’s ecosystem.
- Integration with Aave, Compound, and Yearn via Direct Deposit Modules increases Dai utility and yield generation.
Supporting Collateral Layers
Beyond the flagship pillars, two additional collateral types ensure operational robustness:
Backbone Collateral
High-grade corporate bonds from top ESG-rated companies—held in trusts within super nations—form a secure foundation for Dai stability. These assets offer predictable yields, reinforce the Clean Money narrative, and reduce reliance on volatile or geopolitically exposed instruments.
Maker should lead in distinguishing genuine ESG standards from greenwashing, potentially shaping global ESG rating ecosystems as its influence grows.
Liquidity Collateral
To maintain peg confidence during volatility spikes, Dai needs immediate access to liquid assets—primarily centralized stablecoins like USDC. However, exposure concentration poses risks.
Solution? Use a "DeFi Shield"—depositing stablecoins into protocols like Aave or Compound—to earn yield while mitigating counterparty risk. Diversifying into tokenized bonds from global banks (e.g., Société Générale’s pilot) further reduces geographic overexposure.
Critically, PSM (Peg Stability Module) spreads should drop to zero, removing user friction and enabling Dai to compete seamlessly with centralized alternatives. Lost revenue can be offset by returns from backbone collateral.
Solving USDC Risk: A Strategic Pivot
One of Maker’s most pressing vulnerabilities is its heavy reliance on USDC—a U.S.-centric asset subject to regulatory uncertainty.
Christensen proposes a decisive fix: reallocate $3 billion+ in USDC exposure into ESG corporate bonds, secured under world-class trustees in non-U.S. jurisdictions. Combined with DeFi Shield mechanisms for remaining stablecoins, this move would drastically reduce U.S. dependency—and eliminate single-point blacklist risks.
👉 Explore how next-gen DeFi protocols are redefining financial sovereignty.
Introducing the Sagittarius Engine
The engine powering this transformation? The Sagittarius Engine—a novel token economic system replacing simple buybacks and burns with dynamic value accrual for committed MKR holders.
Named after Sagittarius A*, the supermassive black hole at the Milky Way’s center, the engine creates a gravitational pull that aligns incentives and locks capital sustainably.
How It Works
- Protocol surplus Dai is pooled within the engine.
- MKR holders who lock their tokens in governance gain access to borrow from this pool.
- Loans are offered at DSR-equivalent rates with lenient liquidation terms (e.g., one-week grace period).
- Borrowed Dai comes from previously generated surplus—not new issuance—so no systemic risk is created.
This mechanism rewards long-term participation, encourages deeper governance engagement, and creates a “capital black hole” effect: once MKR enters the engine, it tends to stay, compounding alignment over time.
Governance Power Boost
To amplify commitment, locked MKR could receive up to 2x voting power multiplier. This means smaller holders who lock long-term may wield greater influence than large whales who don’t participate—democratizing governance and reinforcing loyalty.
Fueling Growth: Strategic MKR Issuance
To kickstart adoption and fund expansion, Christensen advocates for large-scale MKR issuance, capped at 3 million total supply to prevent inflationary abuse.
New MKR would be distributed via:
- Dutch auctions
- Yield farming programs for users across diverse collateral types
Proceeds flow directly into the Sagittarius Engine’s capital pool, enabling low-cost lending and stimulating demand to lock both new and existing MKR.
This cycle drives growth: more issuance → more participation → more locked MKR → stronger governance → greater stability → increased adoption.
Impact NFTs: Tokenizing Real-World Change
To bridge digital incentives with physical outcomes, the Sagittarius Engine introduces Impact NFTs—non-fungible tokens representing verifiable climate achievements funded by MakerDAO.
Each NFT might symbolize:
- One wind turbine deployed
- One megawatt of solar capacity
- Carbon offset metrics
- Equivalent tree planting impact
Powered by Maker Oracle Network data, these NFTs reflect real-time environmental impact. They’re distributed proportionally to Sagittarius participants based on locked MKR weight.
Why Impact NFTs Matter
- Value creation: NFTs gain cultural and speculative value as symbols of climate action.
- Community building: Inspired by PFP projects like CryptoPunks, they foster identity-driven engagement.
- Gameification: Following Loot-style primitives, they enable user-generated expansions—turning climate impact into an evolving digital experience.
- Sustainable funding: Royalties from NFT trades can fund reforestation or ocean cleanup initiatives—creating self-sustaining ecological loops.
Artists and developers can collaborate on these NFTs using DAO grants, turning environmental stewardship into a creative movement.
Toward "MKR Holders Create, MKR Holders Own"
True decentralization requires more than code—it demands cultural transformation. Christensen envisions a governance model where MKR holders are not just voters but creators and owners of the protocol’s future.
This means:
- Empowering grassroots participation
- Ensuring transparency in core unit operations
- Designing systems where personal interest aligns with collective good
The Sagittarius Engine makes this possible by tying financial benefit directly to long-term involvement—turning passive holders into active stewards.
The Road to Governance Ice Age: Stability Through Structure
Today, Maker operates in a state of perpetual "governance earthquake"—constant proposals, shifting priorities, and community fatigue. What’s needed is a governance ice age: a stable era defined by robust rules, predictable processes, and minimal disruption.
This doesn’t mean stagnation—it means maturity. Like constitutional democracies, DAOs need enduring frameworks that evolve slowly but reliably.
Key components include:
- World Map: A single source of truth documenting all governance rules, norms, and workflows.
- Decentralized Voter Committees (DVCs): Self-organized groups of MKR holders who analyze proposals, monitor core units, and provide expert opinions—all transparently.
- Separation of Powers: DVCs act as checks on core units and private actors to prevent conflicts of interest.
- Meta Core Units: Specialized teams supporting other core units with data analysis, reporting, and community outreach.
These structures ensure accountability without stifling innovation—even as Maker scales globally.
👉 See how emerging DAO models are achieving scalable decentralization.
Core Keywords
- Sagittarius Engine
- Clean Money
- MKR tokenomics
- climate-resilient DeFi
- MakerDAO governance
- Impact NFTs
- sustainable collateral
- DeFi innovation
Frequently Asked Questions (FAQ)
Q: What is the Sagittarius Engine?
A: It’s a new token economic system for MakerDAO that rewards long-term MKR holders who lock their tokens in governance with low-cost borrowing rights and enhanced voting power—creating stronger alignment between stakeholders and protocol success.
Q: How does Clean Money differ from traditional stablecoins?
A: Unlike most stablecoins backed by short-term debt or fiat reserves, Clean Money proposes backing DAI with sustainable, climate-resilient real-world assets—making it environmentally responsible and financially robust against future shocks.
Q: Why focus on climate change?
A: Climate risk is the largest systemic threat to global financial stability. By proactively funding green infrastructure and resilient economies, MakerDAO can generate alpha while contributing to planetary survival.
Q: Will Impact NFTs have real-world value?
A: Yes. Each NFT represents measurable environmental impact verified via oracles (e.g., megawatts generated). Over time, their scarcity and symbolic meaning may drive collectible value—while royalties fund further ecological projects.
Q: How does the Sagittarius Engine prevent centralization?
A: By giving locked MKR up to 2x voting power, smaller committed holders gain influence over apathetic whales. Combined with DVCs and transparent frameworks, this promotes equitable governance.
Q: Is unlimited MKR issuance risky?
A: No—the proposal includes a hard cap of 3 million MKR. Issuance fuels growth but won’t cause inflation if balanced by increased demand for locked MKR within the Sagittarius ecosystem.