{"id":304162,"date":"2021-07-21T05:30:54","date_gmt":"2021-07-21T02:30:54","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/makerdao-to-dissolve-foundation-and-become-truly-decentralized-again\/"},"modified":"2021-07-21T05:30:54","modified_gmt":"2021-07-21T02:30:54","slug":"makerdao-to-dissolve-foundation-and-become-truly-decentralized-again","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/makerdao-to-dissolve-foundation-and-become-truly-decentralized-again\/","title":{"rendered":"# MakerDAO to dissolve Foundation and become truly decentralized again"},"content":{"rendered":"

“# MakerDAO to dissolve Foundation and become truly decentralized again <\/strong>”
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Pioneering decentralized finance protocol, MakerDAO, has announced its foundation will formally dissolve in the coming months, marking one of the final milestones in the protocol\u2019s roadmap to decentralized governance.<\/p>\n

A July 20 blog post describes Maker\u2019s decentralized autonomous organization, or DAO, as now being \u201cfully self-sufficient\u201d \u2014 with its globally distributed community \u201cnow responsible for every aspect of the Maker protocol.\u201d<\/p>\n

\u201cComplete decentralization of Maker means that future development and operation of the Protocol and the DAO will be determined by thousands or perhaps millions of engaged, enthusiastic community members, all determined to extend the benefits of digital currency to people across the globe.\u201d<\/p><\/blockquote>\n

The post\u2019s author, Maker Foundation CEO, Rune Christensen recounts highlights from the project\u2019s six-year journey, with Christensen having first revealed his plans in a Reddit<\/a> post<\/a> detailing his vision for an Ethereum-back stable token dubbed \u201ceDollar\u201d during March 2015.<\/p>\n

The Maker Foundation was created as a non-profit tasked with overseeing the project’s development and funding in September 2018, reportedly at the behest of its early investors. While Christensen created the Foundation with the intention of dissolving it within two to three years, the move catalyzed<\/a> internal tensions between supporters of the Foundation and those who saw the legal entity as at odds with crypto\u2019s fundamentally anarchic ethos.<\/p>\n

He describes Maker as having \u201ccome a long way in a relatively short period,\u201d transitioning from a pioneering fledgling DAO, into a Foundation, and back to a DAO again. <\/p>\n

\u201cWhile the Foundation played a specific and important role in the further development of the Maker Protocol and the growth of a global team, it was designed to exist only temporarily,\u201d emphasized Christensen. <\/p>\n

In May 2017, more than two years after Christensen revealed Maker on Reddit, the protocol conducted a limited release of ProtoSai \u2014 the precursor to Maker\u2019s first stablecoin, SAI, or Single-Collateral Dai.<\/p>\n

SAI would enjoy a wholesale release in December of 2017 and circulate for nearly two years, with Maker introducing Multi-Collateral Dai (DAI) during November of 2019 \u2014 allowing DAI to be minted against a variety of digital assets app<\/a>roved by Maker governance.<\/p>\n

Related: <\/em><\/strong>Australian digital finance industry wants to legally recognize DAOs<\/em><\/p>\n

While Maker would emerge as a pioneering DeFi protocol perched at the top of the sector\u2019s rankings by total value locked, 2020 was not all smooth sailing for Maker, with users launching a class-action lawsuit against the foundation in the aftermath of \u201cBlack Thursday\u201d in March. The incident saw Maker lose roughly $6.64 million DAI to cascading liquidations after the price of Ether crashed 50% over roughly 24 hours.<\/p>\n

March 2020 would also see the Maker Foundation transfer the MKR token contract to community governance, marking the beginnings of the project\u2019s journey to reinstating decentralizing governance \u2014 with Christensen characterizing<\/a> the foundation as \u201ccompletely pointless.\u201d <\/p>\n

The protocol would also add support for Circle\u2019s centralized stablecoin USDC that month, inflaming controversy regarding Maker\u2019s support for centralized crypto assets as collateral for its purported decentralized stable token.<\/p>\n

In March of this year, \u201cCore Units\u201d were established to coordinate management across the protocol\u2019s various teams and activities. The foundation would also return development funds of 84,000 MKR to the Maker DAO in May, worth nearly $500 million at the time.<\/p>\n

According to DeFi Llama, MakerDAO is currently the sixth-ranked decentralized finance protocol with a total value locked of $5.62 billion.<\/p>\n