MakerDAO company owned by Coin Dai changing management system in crisis
2023.03.27 19:21
MakerDAO company owned by Coin Dai changing management system in crisis
By Tiffany Smith
Budrigannews.com – According to the official forum page for the proposal, MakerDAO, the decentralized autonomous organization that oversees the Dai (DAI) stablecoin, has approved a new proposed “constitution” to formalize governance procedures and assist in preventing hostile actors from taking control of the protocol.
The Maker Constitution has been approved by Maker Governance.
The Endgame Era is upon us. pic.twitter.com/XqzsP44faQ
The Maker Protocol “relies on governance decisions by humans and institutions holding MKR tokens,” which can “expose weaknesses and vulnerabilities that can result in the failure of the Maker Protocol or the loss of user funds,” as stated in the proposal’s text.
The Maker Constitution, according to the document, engages in “alignment engineering” to “lock in the core commitments” of Maker’s community in order to avoid this failure.
The governing document establishes distinct participant categories with distinct powers and responsibilities. For instance, constitutional conservers (CCs) are responsible for “facilitating and protecting the Maker Governance process” by making certain that other participants adhere to the constitution. CCs have the option of becoming constitutional delegates (CDs) or members of the constitutional voter committee (CVCM).
CDs run smart contracts that enable MKR holders to delegate their MKR without losing custody of their tokens, and CVCMs draft position documents for voters to consider.
If officers are deemed to be in violation of the constitution, each office has the authority to remove their listings from the app’s front end. For instance, if a CD believes that a CVC is deceiving the voters it is delegating to, it can ban the CVC from the beginning.
With 76.04% of the MKR vote, the Maker constitution proposal was approved. A mere 23.95 percent of MKR votes were cast in opposition to the proposal, with 0.01% abstaining.
Despite the fact that the vote was in favor of the constitution, some Maker users have publicly criticized it as being authoritarian. For instance, the pseudonymous Twitter user PaperImperium asserts that due to restrictions placed on communications from constitutional delegates, it forces users to be “muzzled and forbidden from communicating with anyone at or around Maker about Maker.”
In a few hours, the @MakerDAO constitution is probably going to pass. Delegates are restricted from discussing Maker with anyone present at or near Maker after that point. This needs to be changed immediately, if only because it prevents delegates from collecting data https://t.co/usIBFIBgkJ
The “Endgame Plan” for the protocol, which Maker founder Rune Christensen believes will transform MakerDAO into a decentralized organization that maintains DAI stability as it may become the world’s reserve currency, is one step in the creation of Maker’s constitution. Andreessen Horowitz has criticized End Game for doing too much too quickly: The venture capital firm is in favor of gradually altering the protocol.
DAI is a stablecoin based on algorithms that is tied to the US dollar. It temporarily lost its peg on March 11 as a result of the aftermath of a banking panic in the United States. However, MakerDAO passed emergency measures to restrict users’ ability to mint DAI with USD Coin (USDC), which allowed it to regain its peg.
