The foundation takes the initiative to give up 500 million US dollars, MakerDAO moves towards decentralized governance

At 21:23:36 on May 3rd, Beijing time, the height of the Ethereum block was 12361485. The Maker Foundation transferred 84,000 MKR to the DSPause Proxy contract of the MakerDAO governance module. 

1620261040621237As the transaction is confirmed on the chain (transaction hash: 0x00eb240abcc7c5e8d322e8ce545c7d32f21204f81c437a1d40c12c2962ceee68), the Maker Foundation will officially give up control of these 84,000 MKR development funds, and all MKR holders will jointly determine the use of the funds through governance.

This decision of the Maker Foundation has won a good market response. Although there has been a certain correction today as the overall market declines, a few hours after the transfer of control (early morning on May 4), MKR once pulled up. To the historical high of US$6347, if calculated at this price, the value of the 84,000 MKR transferred this time will be as high as US$530 million.

Since the official launch of MakerDAO in 2017, the Maker Foundation has been playing a key role in the development of the project. With the support of the foundation, the supply of DAI has grown from zero to more than 4 billion, and it has gradually grown into the entire DeFi world. A solid cornerstone. However, after the completion of the transfer of control of the development fund, it may be time to say “goodbye” to the Maker Foundation in advance.

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As early as last April, the Maker Foundation stated that it planned to transfer governance power to the community in the next two years. At a governance meeting in early 2020, the Maker Foundation outlined a framework for a self-sustainable decentralized autonomous organization (DAO). Rune Christensen, CEO of the Maker Foundation, also stated clearly: “The current dependence of the Maker Ecosystem on the Maker Foundation is unsustainable in the long run. The Maker Foundation needs to accelerate its dissolution and begin to transfer its risk management capabilities to the community. “

At the time when this milestone progress was reached, the Maker community once again discussed the dissolution of the foundation and the subsequent transformation of the “organization”. In an interview with the overseas cryptocurrency media The Defiant, Nadia Alvarez, who is responsible for Maker’s business growth in Latin America, said: “For the entire Maker community, this (transfer of control of the development fund) is obviously a major event. It is to accomplish an ultimate goal-to achieve true decentralization. The Maker Foundation is moving towards dissolution. Each team will use the “Core Unit” as the unit to restart its work with the support of Maker governance. We will Seeing that this will have a positive impact on the entire Maker community and make it stronger.”

Sébastien Deriaux, who is engaged in Maker’s real-world financial development-related work, further stated that under the management mechanism of the DAO, the operation of the “core group” needs to strictly follow the “Core Unit Framework”. At present, at least 10 teams have submitted proposals to continue to operate under the support and supervision of the DAO, including the Growth Core Unit where Alvarez belongs.

Odaily Planet Daily Note: The “core group framework” is a specific specification formulated by the Maker community for the establishment and operation of the core group after the disbandment of the foundation. The framework requires that the establishment of the core group requires a proposal application and must be approved by the governance of the Maker community.

Deriaux further stated that the first two core groups will be almost entirely composed of employees of the former Maker Foundation, but the three core groups of governance (Governance), risk management (Risk) and real-world finance (Real-World Finance) Members will only work for DAO.

For Maker itself, standing at the current time node, although it is difficult to judge whether the core group model is better than the foundation model in terms of specific operational effects, one thing is basically certain-Maker Fund The dissolution of the meeting will significantly reduce the regulatory risk of the project, because DAO is not a legal entity. Under the new organizational model, Maker will eventually move towards complete decentralization controlled by the community.

From an industry perspective, Maker’s decentralization efforts will undoubtedly have a profound demonstration effect on the entire DeFi world. If the Maker Foundation finally completes the decentralization work in the future, it will become the first legal entity in the crypto world to give up its asset control and detached status in the ecosystem in order to realize DAO. The long-term target DeFi project sets a benchmark, which may be just like the impact of Coinbase’s successful listing on other CEX that intends to impact the traditional capital market in terms of demonstration effects.

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