The pioneering decentralized financial protocol, MakerDAO, has announced that its foundation will formally dissolve in the coming months, marking one of the final steps in the protocol’s roadmap to decentralized governance.
A July 20 blog post describes Maker’s Decentralized Autonomous Organization, or DAO, as now “fully self-sufficient” – with its community spread around the world “now responsible for all aspects of the Maker Protocol.”
“Maker’s complete decentralization means that the future development and operation of the protocol and DAO will be determined by thousands, if not millions of engaged and enthusiastic community members, all determined to extend the benefits of digital currency to people across the world. whole world. “
Article author, Maker Foundation CEO Rune Christensen, shares highlights of the project’s six-year journey, with Christensen first revealing his plans in a Reddit Publish detailing his vision for a stable Ethereum token dubbed “eDollar” in March 2015.
The Maker Foundation was formed as a nonprofit to oversee the development and funding of the project in September 2018, apparently at the behest of its early investors. While Christensen created the Foundation with the intention of dissolving it within two to three years, the movement catalysis internal tensions between Foundation supporters and those who viewed the legal entity as at odds with crypto’s fundamentally lawless ethics.
He describes Maker as having “come a long way in a relatively short period of time,” going from a beginner DAO to a foundation, and then back to a DAO.
“Although the Foundation played a specific and important role in the further development of the Maker Protocol and the growth of a global team, it was designed to exist only temporarily,” said Christensen.
In May 2017, more than two years after Christensen revealed Maker on Reddit, the protocol carried out a limited version of ProtoSai, the precursor to Maker’s first stablecoin, SAI, or Single-Collateral Dai.
SAI would get a wholesale release in December 2017 and circulate for nearly two years, with Maker introducing the Multi-Collateral Dai (DAI) in November 2019 – allowing the DAI to be hit against a variety of digital assets approved by the governance of Maker.
Related: Australia’s digital finance industry wants to legally recognize DAOs
As Maker would emerge as a pioneering DeFi protocol perched atop the industry rankings by total value locked in, 2020 has not been smooth for Maker, with users launching a class action lawsuit against the foundation in the wake of ‘Black Thursday’ in March. The incident saw Maker lose around $ 6.64 million in DAI to cascading liquidations after the price of ether slumped 50% in about 24 hours.
March 2020 would also see the Maker Foundation transfer the MKR token contract to community governance, marking the start of the project’s journey towards restoring decentralizing governance – with Christensen. characterizing the foundation as “completely unnecessary”.
The protocol would also add support for Circle’s centralized USDC stablecoin this month, igniting controversy over Maker’s support for centralized crypto assets as collateral for its alleged decentralized stable token.
In March of this year, “central units” were created to coordinate the management of the different teams and activities of the protocol. The foundation would also return development funds of MKR 84,000 to Maker DAO in May, worth nearly $ 500 million at the time.
According to DeFi Llama, MakerDAO is currently the sixth decentralized financial protocol with a total locked-in value of $ 5.62 billion.