MakerDAO has issued a statement regarding the “Emergency Shutdown” that may affect Dai holders and CDP owners who do not upgrade to the Multi-Collateral Dai (MCD) protocol, once it is released.
Since the Maker smart-contract has been completely re-written to enable the new multi-collateralization features, it will require an ecosystem-wide upgrade. A failure to participate in the upgrade process may result in the loss of Ether in single-collateral Dai positions.
What is Emergency Shutdown?
Emergency Shutdown (less-frighteningly known as “Global Settlement”) is a process designed to shut down the MakerDAO system, and make all underlying collateral available for redemption by their rightful owners.
The process is designed to be activated via a MKR holder vote, for one of two reasons:
- To address technical upgrades
- To prevent a major system attack.
This prevents the creation of further CDPs, stops the price feed, and allows users to withdraw their Ether.
A time period will be allocated for users to claim their collateral, which will be accessible shortly after the shutdown is activated. Redemption is immediately available for Dai holders, whereas CDP owners will have to wait 6 hours to claim their Ether.
This 6-hour period is a precaution designed to ensure proper on-chain calculations, and the movement of funds.
How do I upgrade my Dai position or platform?
A user-specific upgrade guide has been published for each type of Dai ecosystem participant, including coin holders, CDP owners, exchanges and wallets, lending protocols, and more.
A “Migration app” has also been created, to more easily assist Dai holders and CDP owners in upgrading their positions from single-collateral Dai to MCD.
Users will be able to simply specify and submit the amount to upgrade, which will be sent back to the user’s Ethereum address.
The application will be made available at migrate.makerdao.com.
When is this all happening?
If you’re involved in the Dai ecosystem, you won’t have to worry about anything until the formal launch of the Multi-Collateral Dai platform.
A specific date has not been announced yet, however MakerDAO is aiming to roll this out by the end of 2019.
You can keep up-to-date with all the latest developments on MDC in GitHub.
