MakerDAO moves toward decentralized governance as foundation voluntarily gives up $500 million

Perhaps it’s time to say “goodbye” to the Maker Foundation in advance.

At 21:23:36 on May 3, with an Ether block height of 12361485, the Maker Foundation transferred 84,000 MKRs to the DSPause Proxy contract of the MakerDAO governance module.

MakerDAO moves toward decentralized governance as foundation voluntarily gives up 0 million

With the transaction confirmed on-chain (transaction hash: 0x00eb240abcc7c5e8d322e8ce545c7d32f21204f81c437a1d40c12c2962ceee68), the Maker Foundation will officially relinquish control of the 84,000 MKR development fund and all MKR holders will jointly decide on the use of the funds through governance.

The Maker Foundation’s decision has been well received by the market, and although there has been some pullback today with the overall market downside, MKR rallied to an all-time high of $6,347 a few hours after the transfer of control (early May 4), at which price the 84,000 MKRs transferred would be worth up to At that price, the 84,000 MKRs transferred would be worth $530 million.

The Maker Foundation has played a key role in the development of MakerDAO since the project went live in 2017, and with its support, the DAI supply has grown from zero to over 4 billion and has grown to become a solid cornerstone of the entire DeFi world. However, after this transfer of control of the development fund is complete, it may be time to say “goodbye” to the Maker Foundation in advance.

MakerDAO moves toward decentralized governance as foundation voluntarily gives up 0 million

Back in April of last year, the Maker Foundation stated that it planned to begin handing over governance to the community within the next two years. At a governance conference in early 2020, the Maker Foundation outlined a framework for a self-sustaining decentralized autonomous organization (DAO), and Maker Foundation CEO Rune Christensen made it clear: “The Maker ecosystem’s current reliance on the Maker Foundation is a long-term concern. The Maker Foundation needs to accelerate its dissolution and start transferring its risk management capabilities to the community.”

This milestone comes at a time when there has been renewed discussion within the Maker community about the dissolution of the Foundation and the ensuing shift in “establishment”. In an interview with overseas cryptocurrency outlet The Defiant, Nadia Alvarez, who is responsible for the growth of Maker’s Latin American business, said, “This [the transfer of control of the development fund] is obviously a big deal for the Maker community as a whole, and all the work is being done to accomplish one The Maker Foundation is moving towards disbanding and teams will restart their work as Core Units, supported by Maker governance. We will see this have a positive impact on the Maker community as a whole, making it even stronger.”

Sébastien Deriaux, who works on Maker’s real-world financial outreach, further stated that under DAO’s governance mechanism, the Core Units will need to operate under a strict Core Unit Framework. Sébastien Deriaux, who works on real-world financial outreach, further stated that under DAO’s governance mechanism, “core groups” need to operate in strict compliance with the Core Unit Framework. At least 10 teams have submitted proposals to continue operating under the auspices and oversight of the DAO, including Alvarez’s Growth Core Unit.

Odaily Planet Note: The “Core Unit Framework” is the Maker community’s specific approach to the formation and operation of core units after the Foundation’s dissolution. The framework requires that a core unit be established through a proposal and approved by the Maker community’s governance.

Deriaux further stated that the first two core groups will be composed almost entirely of former Maker Foundation employees, but that the three core groups – Governance, Risk and Real-World Finance – will have team members who have only worked for DAO.

For Maker itself, at this point in time, while it is difficult to judge the operational effectiveness of the core group model compared to the foundation model, one thing is basically certain – the dissolution of the Maker Foundation will significantly reduce the regulatory risk of the project, because DAO is not a legal entity. With a new organizational model, Maker will also eventually go completely decentralized and controlled by the community.

From an industry perspective, Maker’s decentralization efforts will undoubtedly have a profound demonstration effect on the entire DeFi world. If the Maker Foundation eventually completes its dissolution, it will be the first legal entity in the crypto world to give up control of its assets and its supremacy in the ecosystem in order to achieve a DAO, which will set a benchmark for all DeFi projects with the long-term goal of “decentralization”. This will set a benchmark for all DeFi projects with the long-term goal of “decentralization” and may have the same effect as the successful IPO of Coinbase has had on other CEXs interested in impacting traditional capital markets.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/makerdao-moves-toward-decentralized-governance-as-foundation-voluntarily-gives-up-500-million/
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