Maker Foundation Pursues Full Decentralization, Returns 84k MKR to Community
The Maker Foundation has announced that it has now returned 84,000 MKR tokens from the Development Fund to the MakerDAO DSPause Proxy smart contract. The Foundation says the move is part of plans to fully decentralize the project, according to a blog post on May 3, 2021.
MakerDAO on the Path to Full Decentralization
While decentralization is one of the core ethos of distributed ledger technology (DLT), only a handful of blockchain projects are fully decentralized and the Maker Foundation, the team in charge of the MakerDAO (MKR) lending and stablecoin protocol is striving to make the platform 100 percent decentralized.
Against that backdrop, the team has announced via a May 3 blog post that it has now returned 84,000 MKR from the Development Fund to the MakerDAO ecosystem. This way, the Foundation will no longer be in charge of the money. Instead, the community will be responsible for deciding what to do with it.
“In particular, these MKR tokens were transferred to the DSpause Proxy smart contract in the Governance Module, and are now under the control of Maker Governance. The transaction was completed at 01:23:36 PM UTC in block number 12361485,” wrote the team.
Importantly, the Foundation has made it clear that it has placed no expectations or conditions on the MakerDAO ecosystem regarding how to utilize the returned MKR tokens.
Focusing on Dissolution
While the return of the tokens to the MakerDAO ecosystem is a key milestone towards decentralization, the foundation has, however, made it clear that it still retains less than one percent of the total MKR supply, to enable it to efficiently manage its dissolution and also function as a “bulwark against future potential liabilities.”
What’s more, the Foundation says the dissolution process is expected to get completed by December 31, 2021. However, the Foundation plans to publish progress updates on a regular basis until it fully dissolves.
As reported by BTCManager earlier in April 2021, the MakerDAO liquidation 2.0 executive vote went live, as part of plans to implement the MIP45, a proposal designed to restructure the protocol’s current liquidation system and usher in several improvements.
Now, The Foundation has revealed the introduction of a new governance poll that will enable members of the MakerDAO governance community to support or oppose the addition of multiple vault types in the Liquidations 2.0 Framework.
At press time, MakerDAO (MKR) is the fourth-largest decentralized finance (DeFi) protocol in the world, with $9.7 billion in total value locked (TVL), as seen on DeFi Lama.