138 Interactions, 6 today
The Maker Foundation has returned 84,000 MKR to the project’s DAO, marking a significant step forwards on the protocol’s path to decentralisation.
The MakerDAO Foundation has returned 84,000 MKR tokens from its creation fund to the project’s governance module, marking an important step in the project’s decentralisation journey.
In a May 3 blog post, the foundation notes that “no conditions or expectations” have been placed on MakerDAO regarding the returned tokens, with Maker Governance now having complete control over the tokens.
According to the announcement, with the restoration of progress and the completion of recent technological contributions to Maker’s liquidation engine and its DAO’s core unit system, the foundation will now concentrate on working towards its own dismantling in order to further decentralise the protocol:
“The Foundation now turns inward to focus solely on its dissolution.“
The Maker Foundation has kept less than one percent of MKR’s stock to manage and fund its transition to obsolescence. The foundation hopes to be defunct by December 31, 2021. Before the dissolution is finished, the foundation will continue to issue progress updates.
MakerDAO announced the start of a governance poll on the same day to decide whether to enlarge the vaults subject to its Liquidations 2.0 Framework. The modified liquidations engine, if authorised, will be used for Maker’s Uniswap, 0x, Basic Attention Token, Loopring, Compound, Balancer, Kyber Network, Decentraland, Aave, and renBTC vaults.
If the governance referendum passes, an executive vote will be held within 30 days to complete the upgrades.
The revised framework aims to improve the predictability and reliability of protocol liquidations in order to protect against the hostile cascading liquidations that culminated in MakerDAO being undercollateralized during the March 2020 “Black Thursday” crash. In the weeks following the black swan incident, the project began to decentralise government.
According to DeFi Llama, MakerDAO is the third-largest DeFi protocol, behind only Aave and PancakeSwap, with $9.75 billion in overall value sealed.