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The community of the DeFi platform MakerDAO rejected the proposal to create an advisory board on lending issues. More than 30% of the total number of MKR tokens in circulation participated in the voting on the initiative.
The MIP39c2-SP33 proposal called for the creation of a “Lending Oversight Core Unit” (LOVE-001). Its author was Luca Prospero, the head of the relevant department of MakerDAO.
“The unit will contribute to [развитию платформы], developing an advanced framework for a system of checks and balances, acting as an additional line of defense and helping to educate the community,” the publication says.
According to Prosperi, LOVE-001 could become the focal point of MakerDAO and increase the stability of the platform. It was also implied that the unit would advise DAO on complex issues.
Earlier, the initiative was commented on by the head of the protocol development department of MakerDAO Derek Flossman. He noted that the community needs to decide which path of development the platform will take.
MakerDAO needs to decide whether its purpose is to run a decentralised & de-risked credit facility or an investment vehicle to maximise profit…
— Derek (@DerekFlossman) June 25, 2022
“MakerDAO must decide whether its goal is decentralized and risk-free lending or an investment vehicle focused on maximizing profits. […] The power of the TAO is not in efficiency, its strength is in stability,” Flossman wrote.
According to him, the adoption of the proposal could create additional risks, including the centralization of power and regulatory problems for individual members of the community.
Analysts at GFX Labs said that MKR was mainly favored by venture capitalists and trading companies. They stressed that the outcome of the vote was decided in the last two hours due to the redeployment of votes.
MakerDao governance allows new votes to enter the system and redelegations to occur during votes. MKR holders on each side exercised that ability in the last minutes of voting to attempt to achieve their desired outcome. Ultimately, the individuals who hold MKR control the votes.
— GFX Labs (@labsGFX) June 27, 2022
GFX Labs also noted that the voters actively borrowed MKR from Aave. This led to a spike in interest rates in the landing protocol.
Prosperi noted that a large number of MKR were introduced through “shadow delegation” and proxy voting, and the platform’s founder Rune Christensen did not support the proposal.
2/4 🧵 Worth noting:
Insane active VC participation
Founder re-centralising vote in Shadow Delegate
Previously ostracised co-founder resurrected -> his comeback message is a bliss
Tons of proxy voting
Concerted parties (borrowers too)
Last-minute re-delegation$MKR borrows pic.twitter.com/J4kANE4q9G
— Luca Prosperi (@LucaProsperi) June 27, 2022
Christensen himself stated that experiments with the MakerDAO structure “are not suitable for the core” of the protocol.
This governance battle was a big win for voter turnout. The initiative from the growth task force is a good thing that helped bring maker governance to life. But voters have made it clear experiments with hierarchy and multisigs aren’t suited for the core of the maker protocol. https://t.co/UIyZTPhvoZ
— Rune (@RuneKek) June 27, 2022
“This battle for governance was a big win in terms of voter turnout. The Growth Task Force initiative is a good thing that has helped revitalize the governance system. But voters have made it clear that experiments with hierarchy and multi-signatures are not suitable for the core of the protocol,” he wrote.
Recall that in March 2022, the MonetSupply team submitted to the MakerDAO community a proposal to change the management and staking model using stkMKR tokens.
#MakerDAO #members #support #idea #creating #advisory #board