Saturday, February 24, 2024

Differences within MakerDAO community members is crippling.

MakerDAO had shared “The Endgame Plan” to improve the protocol’s governance mechanisms and tap into DeFi innovation. However, disagreements among MakerDAO community members have impeded the protocol’s ability to make complicated decisions, leading to voter apathy and poor accountability.

Rune Christensen, the co-founder of MakerDAO, shared the reality of the situation. He said the status quo of a maker is untenable. Christensen outlined that the MKR is near valueless because of the compounding multidimensional risk. Members of the MakerDAO community, following the Tornado Cash sanctions and Circle’s move to blacklist all USDC in Tornado Cash contracts, pondered whether the decentralized autonomous organization could completely move away from its reliance on seizable centralized assets.

But Christensen said completely shifting away from USDC has its downsides. He believes the free-floating DAI would lose its Price Stability Peg to the US dollar. This measure can only be taken under an authoritarian threat. Christensen said political and structural issues that nobody has ever uncovered before, are in the workforce. He pointed out that nobody can fix it, and those who could, would never waste their time and sanity fighting against the garbage politics of those who want to just create drama or those who have an agenda to keep the budgets flowing.

The MakerDAO co-founder believes the Endgame proposal can resolve some of the issues. The proposal understands the issues and deals with them. It delivers sustainable advantages from decentralization and token governance that isn’t just regulatory arbitrage. This has to be shown practically.

But a number of MakerDAO community members are not convinced. One member told Christensen that nobody who is a key person will admit to disagreeing with him. He said the co-founder is inevitably surrounded by sycophants. The only thing that the MakerDAO community has been able to agree upon is turning toward real-world assets to ensure the value of the DAI would remain stable.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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