MakerDAO members showed up in record numbers to defend the principles of decentralization and set new precedents for future DAO governance.
Members of MakerDAO, the lending program behind the Dai ( DAI), stablecoin, rejected several proposals that would have led to the protocol’s governance becoming more centralized. This is a significant win for decentralization.
Monday saw MakerDAO members meet to discuss three proposals for restructuring the leadership of the autonomous organization (DAO) into something more like, with a board and directors.
These proposals were created to help the DAO be more efficient in executing “high-level decision making”. Sam McPherson (author of one of these proposals) expressed frustration with the current governance model tweeting.
“The status quo isn’t working… The DAO doesn’t currently have the capacity to make high-level decision making which leads to decision paralysis and less informed parties making suboptimal calls.”
The first proposal, LOVE-001, proposed creating an “oversight Core Unit” that would “periodically inspect the activity of other Core Units.” This technical term means that a more central authority would have additional control over new collateral decisions.
More than 60% of the 293,911 Makers ( MKR),-delegated governance tokens, were used to vote against LOVE-001.
MakerDAO’s GitHub says that the second proposal, “Makershire Hathaway”, would create a special purpose fund of 10 million dollars to generate yield from stablecoin reserves. Makershire Hathaway was rejected 65%.
The third proposal, MIP75c3SP1, proposed the creation of a discretionary fund to be managed by a new Growth Task Force that would strive to grow Maker “as quickly as possible.” It was rejected by just 76% of MKR.
MakerDAO noted that the three proposals seemed to have stirred things up, and they saw the most governance voting activity.
These proposals were rejected, and the historical voter turnout suggests that MakerDAO members may prefer a properly decentralized model for governance. This will set a strong precedent to other Decentralized Finance (DeFi) protocols.
MakerDAO, the governing body for the Maker protocol is responsible for issuing DAI stablecoins pegged in the United States dollar to users who deposit Ether ( ETH), wrapped Bitcoin (wBTC), and almost 30 other cryptocurrencies.
MakerDAO made a major move this month with the protocol signaling that it intends to invest a portion its dormant stablecoin reserve into traditional financial assets. MakerDao decided to end Aave’s ability generate DAI without collateral earlier this month.
According to Cointelegraph Price Index, Maker’s governance token MKR, which has been undergoing crucial developments, is currently trading at $880 despite this.