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 status quo is not working… The DAO is not currently set up to make high-level decisions which is leading to decision paralysis or less informed parties making sub-optimal calls.”
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 received the most unilateral rejection, with just over 76% of MKR tokens used to vote against it.
The three proposals appeared to have stirred the pot, with MakerDAO noting that they witnessed the largest amount of governance voting activity to date.
Average number of unique poll voters per month also hit an all-time high!
57 is the new record. Previous record was 38.
— Maker (@MakerDAO) June 26, 2022
The rejection of these proposals combined with the historic voter turnout indicates…
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