a16z crypto purchases 6% of MKR, backing Stablecoin Vanguard MakerDAO

Summary

Andreessen Horowitz's a16z crypto fund has acquired a 6% stake in MakerDAO's MKR tokens for $15 million, signaling support for the Dai stablecoin and positioning themselves to influence the governance of MakerDAO.

Abstract

a16z crypto, a dedicated crypto fund from venture capital firm Andreessen Horowitz, has made a strategic investment by purchasing 6% of the total MKR token supply from MakerDAO, the organization behind the Dai stablecoin. The $15 million acquisition reflects a16z crypto's confidence in MakerDAO's technology, which underpins the first decentralized stablecoin built on Ethereum with formally verified smart contracts. As a significant MKR holder, a16z crypto will engage in the governance of MakerDAO, contributing to the stability and growth of the Dai Credit System. The partnership includes a16z crypto providing MakerDAO with operational support, including expertise in sales, marketing, technical talent, and regulatory guidance, to foster Dai's adoption and navigate the regulatory landscape. MakerDAO's CEO, Rune Christensen, welcomes the collaboration, anticipating that it will accelerate the evolution and adoption of the Dai Credit System.

Opinions

Katie Haun, General Partner at a16z crypto, views MakerDAO as a pioneering force in the stablecoin market and believes its stablecoin technology and team will significantly influence the crypto economy's future.
Rune Christensen, CEO of MakerDAO, sees the investment and support from a16z crypto as instrumental in advancing the Dai Credit System and leveling the economic playing field globally.
MakerDAO emphasizes that a16z crypto will not only provide capital but also active governance and a wide range of operational support, which is crucial for the next phase of growth and adoption of the Dai stablecoin.
The investment from a16z crypto is seen as a validation of MakerDAO's approach to creating a decentralized stablecoin and is expected to enhance the credibility and trust in the MakerDAO ecosystem.

a16z crypto purchases 6% of MKR, backing Stablecoin Vanguard MakerDAO

Signaling their support of MakerDAO’s Dai stablecoin, investment fund a16z crypto has purchased 6% of the total MKR token supply for $15 million USD.

The purchase gives a16z crypto a stake in the first functional decentralized stablecoin and the only system built with formally verified smart contracts on Ethereum (or any blockchain). As a MKR holder, a16z crypto will participate in governance of MakerDAO and the Dai Credit System as it becomes the first decentralized autonomous stablecoin organization.

The strategic purchase in MakerDAO is one of the first from a16z crypto, the newly created, dedicated crypto fund from Andreessen Horowitz. The move was driven by General Partner Katie Haun, an accomplished former federal prosecutor who led the first government task force on cryptocurrencies and also led the investigation into the Mt. Gox hacks and into the federal task force investigating Silk Road.

“As a first mover and innovator in stablecoins, MakerDAO represents a very compelling opportunity in the crypto space,” said Katie Haun, “MakerDAO’s technology, ecosystem and talent have put theory into action to deliver a decentralized stablecoin that we believe will help drive the future of the crypto economy.”

As part of this partnership, MakerDAO will receive operating capital through the next growth stage, 3 years of support for the MakerDAO community, and most importantly, full operational support from the 80+ person Andreessen Horowitz a16z team. Specifically, Dai Stablecoin adoption and regulatory support are two of the first priorities.

Andreessen Horowitz and a16z crypto are opening up their expertise and network in areas ranging from sales and business development (including partnerships), marketing, technical talent, HR operations, and more. We look forward to being able to utilize a16z’s vast array of resources and knowledge to help guide and build Maker for years to come.

“a16z crypto shares our vision for a world where the blockchain has leveled the economic playing field for everybody,” said Rune Christensen, CEO and cofounder of MakerDAO. “With investment and operational support from a16z crypto, MakerDAO will be able to accelerate evolution, innovation, and adoption of the Dai Credit System.

The Future of MakerDAO

To our MKR holders, this is an exciting time to be part of the community. a16z crypto will act as a peer, helping us build strengths, solve problems, and drive momentum. As MKR holders, a16z crypto has responsibilities like every other MKR holder. With their point of view as active governors, they will provide insight and participate in critical conversations with other MKR holders.

In addition to the investment from a16z crypto, Maker recently launched Multi-Collateral Dai on Kovan TestNet and held its first public governance vote. With an exciting fall full of announcements, MakerDAO is making its mark as a vanguard of blockchain technology. The team looks forward to continued product excellence and rapid Dai adoption in the coming months.