MakerDAO Makes First Steps Toward Endgame

MakerDAO constitution will completely revolutionize governance at the DAO

article-image

Artwork by Axel Rangel modified by Blockworks

share

Community governance that oversees MakerDAO, the decentralized protocol behind stablecoin DAI, has voted in favor of the “Maker Constitution,” making its first steps toward Endgame.

The Endgame plan is a roadmap designed by Rune Christensen, the protocol’s co-founder, to decentralize governance at MakerDAO and improve DeFi innovation.

It includes a set of 14 different Maker Improvement Proposals (MIPs) — designed collectively to create rules and corresponding frameworks that will eventually enable the launch of Endgame.

The first MIP up for a vote was the Maker Constitution, otherwise known as MIP101.

The Maker Constitution can be considered the foundation of Endgame. Made up of 11 constitutional articles and 12 scope frameworks, the constitution will implement the following changes at MakerDAO:

  1. Create a “purpose system” to enable token allocations to SubDAOs, which will determine charities to donate to through community votes.
  2. Make strides toward DAI stablecoin decentralization through MKR token generation in the event there is not enough DAI collateral.
  3. Introduce a standardized and regulated application to align voter incentives and prevent voter manipulation.
  4. Invite “constitutional conservers” or external entities to facilitate governance operations.
  5. Create “constitutional voter committees” consisting of groups of MKR holders tasked with reaching compromises with other teams to minimize chances of making bad decisions.
  6. Establish a protocol delegation system that will enable the delegation of MKR tokens as collateral to generate more DAI to increase voter incentive.
  7. Continue the function of Core Units and project-based funding.
  8. Launch six new SubDAOs alongside the activation of Endgame.
  9. Create modifiable subcomponents designed to move MakerDAO toward greater decentralization.
  10. A new set of boundaries to manage the modifiable subcomponents or “Scope Frameworks.”
  11. A process to make amendments to the Maker Constitution.

A shadow delegate noted the constitution gave them a “good starting point to grab [the] whole view of [the] next governance structure of MakerDAO,” and hence chose to vote “yes” for the proposal. 

London Business School Blockchain association, meanwhile, wrote in a forum that they chose to vote against the proposal because there were “important aspects of the Constitution that we do not understand, or simply cannot support.”

Ultimately, a total of 76% of delegates voted in favor, and 24% voted against. Less than 0.01% of members abstained. 

Endgame has been in talks since May 2022. Only recently has it finally been given the go-ahead by MakerDAO’s community governance.  

A governance delegate of MakerDAO that goes by the pseudonym park_eth told Blockworks that, “anyone who’s involved with DeFi governance will know that Maker is probably the most complicated one.” 

“Maker has actually built a very good culture of encouraging different opinions and voices onto the community platform and actually having rigorous debate on the issues. Generally the quality of discussion [is] very, very high,” they said. “I think [decentralization] is not necessarily a bad thing [but] decisions always feel really hard.”


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit