MakerDAO members shoot down proposal for more centralization
In a major win for decentralization, members of MakerDAO, the lending protocol behind the Dai (DAI) stablecoin, have rejected a series of proposals that would have seen the protocol’s governance structure become more centralized.
On June 27, the members of MakerDAO (MKR) showed up to consider three proposals that would have reorganized the leadership of the decentralized autonomous organization (DAO) into something that more closely resembles a traditional corporation, complete with a board of directors.
The proposals were drafted as potential solutions for making the DAO more efficient and more capable of executing “high-level decisions.” Author of one of the proposals and member of the MakerDAO Protocol Engineering Core Unit, Sam McPherson voiced his frustration about the current governance model, tweeting:
The first proposal, called LOVE-001, suggested creating a new “oversight Core Unit.” Essentially this proposal would have established a new unit that would “periodically audit the activity of other Core Units” — a technical way of saying that a more centralized authority would be capable of exerting additional control over decisions concerning new collateral.
Over 60% of the 293,911 MKR delegated governance tokens were used to vote against the LOVE-001 proposal.
According to MakerDAO’s GitHub, the second proposal called “Makershire Hathaway” would create a 10-million-dollar special purpose fund designed to earn yield from the protocol’s stablecoin reserves. Makershire Hathaway was rejected by 65% of voters.
The third proposal, known only as MIP75c3-SP1, suggested the establishment of a discretionary fund that would be overseen by a new “Growth Task Force” that would aim to grow Maker “as fast as possible.” This proposal
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