Vitalik Buterin Sells MKR Following Maker Controversy

Ethereum co-founder Vitalik Buterin has unexpectedly sold 500 MKR tokens worth half a million USD after Maker announced plans to build its own blockchain based on Solana.

Vitalik Buterin sells MKR following Maker controversy. Photo: Bloomberg

On the evening of September 2nd, the crypto community on the social media platform X (formerly Twitter) was abuzz with news of Vitalik Buterin swapping 500 MKR for 353 ETH (worth $581,000).

Vitalik Buterin, who is he?
Notably, this is the first time Vitalik Buterin has moved MKR out of his personal wallet since May 2021, over two years ago, according to The Data Nerd.

This move comes immediately after Maker - the leading DeFi project on Ethereum and the largest issuer of the decentralized stablecoin DAI - announced on September 1st the latest adjustment to its Endgame Plan. According to Maker founder Rune Christensen, after a thorough assessment, he intends to build a separate blockchain for Maker based on Solana's technology.

Maker's founder asserts that Solana is the most suitable choice for code replication, citing its technical criteria that meet the project's needs. Additionally, Maker is also considering Cosmos as an alternative.

However, Rune Christensen's statement has faced significant opposition. While some members of the Solana community voiced support for Maker, Ethereum proponents criticized Maker and demanded an explanation for not choosing an EVM-compatible solution or becoming an Ethereum layer-2 solution.

Rune Christensen stated that to achieve the decentralized governance vision of Maker, the new blockchain needs the ability to hard fork to address emergency situations like governance attacks or security incidents. However, this explanation seems insufficient to satisfy the Ethereum community.

By the afternoon of September 2nd, Maker's founder had to continue with a Twitter post to appease the community, stating that Ethereum, Solana, or Cosmos are all excellent technology platforms and should collaborate to form an interconnected multi-blockchain network, rather than splintering into factions as is currently happening.

It remains unclear whether Vitalik Buterin's sale of MKR tokens signifies a stance against Ethereum, as the ETH co-founder has not made any personal statements regarding Maker's situation.

Nevertheless, Vitalik Buterin's timing of selling MKR could be seen as opportune, as the token's price has been recovering to its highest levels in months.

3D chart of the MKR/USDT pair on Binance at 10:50 PM on 02/09/2023

Update:

On the morning of September 3rd, Vitalik Buterin shared on the Discord of the Reflexer Finance project, the entity behind the decentralized stablecoin RAI, that "MakerDAO is stubbornly pursuing a strange development path."

The Ethereum co-founder also congratulated the Reflexer team on their achievements with stablecoin RAI during this period.