2 years ago
MakerDAO’s (MKR) Endgame connection was overwhelmingly passed by the community, with astir 80% of the votes successful support.
The endgame proposal
The connection was submitted by MakerDAO laminitis Rune Christensen and focused connected breaking the decentralized protocol into smaller units called MetaDAOs which would beryllium much decentralized.
With implicit $8 cardinal successful assets successful its reserves, MakerDAO is the biggest DeFi protocol. However, the laminitis believes its size affects decentralization, efficiency, and censorship resistance. Hence the determination to interruption it down.
Part of Christensen’s connection proposes a 25% bounds connected the Real World Assets backing the DAO. He besides called for the instauration of antagonistic rates.
According to the proposal, each MetaDAO volition person its token and state to prosecute immoderate profit-generating enterprises. In addition, DAI holders could output workplace the caller tokens arsenic it is connected to the DAI ecosystem.
The proposal’s transition volition alteration the existent Strategic Core Units operation that MakerDAO uses. Instead, autarkic clusters would look that would marque their decisions separately.
The assemblage supported Coinbase’s proposal to determination Maker’s $1.6 cardinal USDC reserve to its Coinbase Prime. This is an effort to make other gross from the reserves, arsenic determination would beryllium a 1.5% output connected the assets.
Another $500 cardinal would beryllium transferred from the reserves to crypto broker Monetalis and hedge money Appaloosa who would past lend it to Coinbase astatine an expected yearly instrumentality of 4.5% to 6%.
The assemblage besides voted successful enactment of creating a vault for Lido ETH staking derivative stETH. This determination volition diversify MakerDAO’s stablecoin DAI reserves and trim its reliance connected USDC.
Meanwhile, the endgame connection does not bask the backing of cardinal investors successful the protocol similar Andreessen Horowitz. The task superior steadfast said:
“The Core Unit operation is arguably already legally decentralized. Introducing MetaDAOs apt does not alteration this analysis, nor pb to much organizational resiliency from a strictly ineligible perspective.”
Community criticizes proposal
However, immoderate experts person criticized the voting, saying it is not arsenic decentralized arsenic it seems.
Sébastien Derivaux, the Head of Asset Liability Management astatine MakerDAO, claims that Rune unsocial represents 63% of the 122 addresses that voted and has economical power implicit 74%. So, lone 6% of those who voted successful enactment were not nether the founder’s influence.
The Endgame, projected by Rune, has passed the MakerDAO governance vote. While 122 persons person voted, lone 1 matters arsenic helium correspond 63% of the turnover and 74% if we usage influence.#decentralization
1/n 
pic.twitter.com/lbF8sO8pGU
— Sébastien Derivaux (@SebVentures) October 25, 2022
Several others besides criticized the archetypal proposal. The CEO of Rari Capital, Jay Bhavani, called it “unnecessarily analyzable and over-optimizing for galore problems.”
The Head of governance astatine LBS Blockchain Society Park Y besides explained wherefore they voted against the proposal. According to the entity, it opposed it owed to respective reasons.
These see the deficiency of statement successful MakerDAO regarding its overriding intent and the trade-off of the terms stableness of DAI. Other reasons included that MetaDAO wouldn’t voters’ apathy, and the Endgame program was not the lone mode to marque MakerDAO much efficient.
The station MakerDAO MKR assemblage approves ‘endgame’ proposal appeared archetypal connected CryptoSlate.
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