In a bid for compete decentralisation by the end of 2021, MakerDAO has returned a large amount of money from the developer fund to the governance module.
According to Coin Telegraph, the foundation has placed “no conditions or expectations” on lending platform MakerDAO regarding the returned tokens. Maker Governance now has 100% control over 84,000 MKR tokens.
The clock ticks down to dissolution
As part of the transition to obsolescence, the Maker Foundation has apparently kept back less than 1% of the MKR supply.
Setting a goal of complete dissolution and decentralisation by December 31 this year, the foundation will supply regular progress reports to keep markets informed.
Now that DAO’s core unit framework has been upgraded, the foundation can ‘turn inward’ to finance and manage its primary goal of dissolution.
Maker announces governance poll
Maker has also confirmed it will stage a governance poll. This will establish whether the vaults should be expanded, subject to the Liquidations 2.0 Framework.
If the poll indicates approval, the updated liquidations engine will be deployed for Maker’s Uniswap, Basic Attention Token, Ox, Compound, Loopring, Kyber Network, Balancer, Aave, Decentraland and renBTC vaults.
Once the poll is approved, an executive vote is anticipated to finish off the upgrades within 30 days of the vote.
What will the updated mechanism achieve?
It should enable more predictable and stable liquidations executed by the protocol.
This would then prevent worst-case scenario ‘cascading liquidations’, such as those which led to MakerDAO’s under-collateralisation during the March 2020 ‘Black Thursday’ crash.
Following this event, the project took steps to decentralise governance in the weeks that followed.
Significant MakerDAO DeFi transfer
The MakerDAO token transfer is thought to be worth around $493 million at current MKR prices, according to Yahoo Finance.
On May 4, MKR was trading at $5,930, reflecting a surge of close to 900% since the start of 2021.
On May 3, MKR hit a record peak of just under $6,300. This results in a market cap of $5.2 billion, with more than 900,000 tokens in circulation.
MakerDAO is now rated as third-largest DeFi protocol, behind Aave and PancakeSwap.