MakerDAO to dissolve Foundation and become truly decentralized again
MakerDAO plans to complete its roadmap to suburbanized governance with the dissolution of its foundation within the coming back months.
Pioneering redistributed finance protocol, MakerDAO, has proclaimed its foundation can formally dissolve within the returning months, marking one in all the ultimate milestones within the protocol’s roadmap to redistributed governance.
A July 20 journal post describes Maker’s redistributed autonomous organization, or DAO, as currently being “fully self-sufficient” — with its globally distributed community “now to blame for each facet of the Maker protocol.”
“Complete decentralization of Maker means that future development and operation of the Protocol and the DAO will be determined by thousands or perhaps millions of engaged, enthusiastic community members, all determined to extend the benefits of digital currency to people across the globe.”
The post’s author, Maker Foundation business executive, runic letter Christensen recounts highlights from the project’s six-year journey, with Christensen having 1st unconcealed his plans during a exceedingly|in a very} Reddit post particularisation his vision for an Ethereum-back stable token dubbed “eDollar” throughout March 2015.
The Maker Foundation was created as a non-profit tasked with overseeing the project’s development and funding in September 2018, reportedly at the dictation of its early investors. whereas Christensen created the muse with the intention of dissolving it among 2 to a few years, the move catalyzed internal tensions between supporters of the muse and people who saw the legal entity as at odds with crypto’s essentially uncontrolled attribute.
He describes Maker as having “come an extended manner during a comparatively short amount,” transitioning from a pioneering fledgling DAO, into a Foundation, and back to a DAO once more.
“While the muse compete a particular and necessary role within the more development of the Maker Protocol and also the growth of a world team, it absolutely was designed to exist solely briefly,” stressed Christensen.
In could 2017, over 2 years when Christensen unconcealed Maker on Reddit, the protocol conducted a restricted unleash of ProtoSai — the precursor to Maker’s 1st stablecoin, SAI, or Single-Collateral Dai.
SAI would get pleasure from a wholesale unleash in December of 2017 and flow into for nearly 2 years, with Maker introducing Multi-Collateral Dai (DAI) throughout Nov of 2019 — allowing DAI to be minted against a spread of digital assets approved by Maker governance.
While Maker would emerge as a pioneering DeFi protocol perched at the top of the sector’s rankings by total value locked, 2020 was not all smooth sailing for Maker, with users launching a class-action lawsuit against the foundation in the aftermath of “Black Thursday” in March. The incident saw Maker lose roughly $6.64 million DAI to cascading liquidations after the price of Ether crashed 50% over roughly 24 hours.
March 2020 would also see the Maker Foundation transfer the MKR token contract to community governance, marking the beginnings of the project’s journey to reinstating decentralizing governance — with Christensen characterizing the foundation as “completely pointless.”
The protocol would also add support for Circle’s centralized stablecoin USDC that month, inflaming controversy regarding Maker’s support for centralized crypto assets as collateral for its purported decentralized stable token.
In March of this year, “Core Units” were established to coordinate management across the protocol’s various teams and activities. The foundation would also return development funds of 84,000 MKR to the Maker DAO in May, worth nearly $500 million at the time.
According to DeFi Llama, MakerDAO is currently the sixth-ranked decentralized finance protocol with a total value locked of $5.62 billion.