MakerDAO, the decentralized autonomous organization that governs the Dai stablecoin (DAI), has approved a new proposed “constitution” intended to formalize governance processes and help prevent hostile actors from taking over the protocol, according to the forum’s official page for the proposal.
The Maker Constitution has been approved by Maker Governance.
The Endgame Era is upon us.https://t.co/OKf9Kgo4dp pic.twitter.com/XqzsP44faQ
—Maker (@MakerDAO) March 27, 2023
According to the text of the proposal, a constitution is needed because the Maker Protocol “depends on the governance decisions of humans and institutions holding MKR tokens”, that they may “expose weaknesses and vulnerabilities that may result in the failure of the Maker Protocol or the loss of user funds.”
To avoid this failure, the Maker Constitution uses “alignment engineering” to “lock down fundamental commitments” from the Maker community, According to the document.
The governance document creates several categories of participants with different powers and responsibilities. For example, the constitutional conservatives (CC) have the mission of “facilitate and protect the Maker governance process” making sure that the other participants respect the constitution. CCs can become members of constitutional voter committees (CVCM) or constitutional delegates (DC).
CVCMs produce position papers for voters to consider, and DCs operate smart contracts that allow MKR holders to delegate their MKRs without losing custody of their tokens.
Each office has powers to remove listings of officials from the front of the application if they are believed to be violating the constitution. For example, a DC may bar a CVC from entry if it is believed to be misleading the voters they delegate to it.
Maker’s proposed constitution was approved with 76.04% of the MKR votes. Less than a quarter (23.95%) of the MKR votes were against the proposal, and 0.01% abstained.
Despite the upvote, some Maker users have openly criticized the constitution as authoritarian. For example, the pseudonymous Twitter user “PaperImperium” has claimed that it forces users to be “gagged and prohibited from communicating with anyone in or around Maker about Maker” due to the restrictions it places on communications from constitutional delegates.
In several hours, the @MakerDAO constitution is likely to pass. From that time forward, delegates are muzzled and forbidden from communicating with anyone at or around Maker about Maker. This is a top priority to amend, if only bc it means delegates cannot collect information https://t.co/usIBFIBgkJ
— PaperImperium (@ImperiumPaper) March 27, 2023
Maker’s constitution is one step in the process of creating what Maker founder Rune Christensen called the “Endgame Plan” for the protocol, which he believes will turn MakerDAO into a decentralized organization that keeps DAI stable, potentially becomes the reserve currency for the world. End Game has been criticized by Andreessen Horowitz for doing too much too fast: the venture capital firm supports changing the protocol in a more gradual manner.
DAI is an algorithmic stablecoin pegged to the US dollar. It temporarily lost its peg to the dollar on March 11 due to the fallout from a US banking run, but later regained it after MakerDAO passed emergency measures to limit users’ ability to mint DAI with USD Coin (USDC).
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