MakerDAO passes new 'constitution' to formalize governance process

MakerDAO, the decentralized autonomous enactment that governs the Dai (DAI) stablecoin, has passed a caller projected “constitution” intended to formalize governance processes and assistance forestall hostile actors from taking implicit the protocol, according to the authoritative forum leafage for the proposal.

According to the proposal’s text, a constitution is needed due to the fact that the Maker Protocol “relies connected governance decisions by humans and institutions holding MKR tokens,” which tin “expose weaknesses and vulnerabilities that tin effect successful the nonaccomplishment of the Maker Protocol oregon the nonaccomplishment of idiosyncratic funds.”

To debar this failure, the Maker Constitution engages successful “alignment engineering” to “lock successful the halfway commitments” of Maker's community, the papers said.

The governing papers creates respective categories of participants with antithetic powers and responsibilities. For example, law conservers (CCs) person the occupation of “facilitating and protecting the Maker Governance process” by ensuring that the constitution is followed by different participants. CCs tin go law elector committee members (CVCMs) oregon law delegates (CDs).

CVCMs trade presumption documents for voters to consider, and CDs run astute contracts that let MKR holders to delegate their MKR without losing custody of their tokens.

Related: MakerDAO votes to support USDC arsenic superior collateral

Each bureau has powers to region listings of officers from the app’s beforehand extremity if they are believed to beryllium violating the constitution. For example, a CD tin prohibition a CVC from the beforehand extremity if the CVC is believed to beryllium deceiving the voters who are delegating to it.

The Maker constitution connection passed with 76.04% of the MKR vote. Less than a 4th (23.95%) of MKR votes went against the proposal, and 0.01% abstained.

Despite the ballot successful its favor, immoderate Maker users person openly criticized the constitution arsenic being authoritarian. For example, the pseudonymous Twitter idiosyncratic PaperImperium has claimed that it forces users to beryllium “muzzled and forbidden from communicating with anyone astatine oregon astir Maker astir Maker” owed to restrictions it imposes connected communications from law delegates.

In respective hours, the @MakerDAO constitution is apt to pass. From that clip forward, delegates are muzzled and forbidden from communicating with anyone astatine oregon astir Maker astir Maker. This is simply a apical precedence to amend, if lone bc it means delegates cannot cod accusation https://t.co/usIBFIBgkJ

Maker's constitution is 1 measurement successful the process of creating what Maker laminitis Rune Christensen called the “Endgame Plan” for the protocol, which helium believes volition person MakerDAO into a decentralized enactment that keeps DAI unchangeable arsenic it perchance becomes the reserve currency for the world. End Game has been criticized by Andreessen Horowitz for doing excessively overmuch excessively fast: the task superior steadfast supports changing the protocol successful a much piecemeal fashion.

DAI is an algorithmic stablecoin pegged to the U.S. Dollar. It temporarily mislaid its peg connected March 11 owed to fallout from a banking panic successful the U.S., but past recovered it aft MakerDAO passed exigency measures to bounds the quality of users to mint DAI with USD Coin (USDC).