MakerDAO

In August 2024, MakerDAO rebranded to "Sky," introducing the USDS stablecoin and SKY governance token while keeping original DAI and MKR tokens in circulation (users could voluntarily convert at 1:1 for USDS and 24,000:1 for SKY). By December 2024, the protocol reported record $22 million revenue driven by DAI/USDS supply reaching $6.2 billion—the highest since 2022. By late 2024, the community was voting whether to revert to the original Maker branding.

This is decentralized governance exhibiting identity crisis. MakerDAO operates as a Decentralized Autonomous Organization where token holders vote on protocol changes, collateral types, stability fees, and strategic direction. Smart contracts execute approved decisions automatically—no CEO, no board, no central authority. When the community voted to rebrand to Sky, it wasn't management diktat; it was collective decision-making through on-chain governance. When backlash erupted, the community could vote to reverse the decision.

The biological model is quorum sensing in bacteria—individual cells release signaling molecules, and once concentration crosses a threshold, the population shifts behavior in unison. MKR/SKY token holders are individual cells. Proposals are signaling molecules. When enough tokens vote for a change, the protocol executes it. The system achieves coordination without hierarchy, but also exhibits the weaknesses of distributed consensus: slow decision-making, contentious debates, and vulnerability to large token holders dominating votes.

What MakerDAO demonstrates is homeostasis through algorithmic stabilization. The USDS/DAI stablecoin maintains a $1.00 peg through over-collateralization: users deposit $150 in crypto to borrow $100 in DAI. If collateral value drops, the protocol automatically liquidates positions to protect the peg. The treasury holds $2.1 billion as backup. This is automated regulation—the organism maintains equilibrium without conscious oversight.

Revenue peaked at $22.18 million in December 2024 because usage increased: more DAI/USDS minted, more stability fees collected. The protocol expanded to Solana, adding 100 million USDS tokens within a week of launch—multi-chain colonization of new ecosystems. Yet despite success, governance remains messy: the rebrand confusion, the pending name reversion, the "Endgame Plan" to split into smaller SubDAOs (now called "Stars"). It's evolution in real-time, but without the selection pressure of bankruptcy to force coherence.