The MakerDAO community does not want more centralization on the platform. The protocol members have rejected several proposals that could bring more centralization to the protocol’s governance structure.
MakerDAO is a lending protocol behind the DAI stablecoin. The stablecoin has been praised for its focus on over-collateralization, given how other stablecoins have been performing.
MakerDAO rejects proposal for centralization
Members of MakerDAO held a meeting on Monday to consider three proposals that could have altered the leadership of the protocol’s decentralized autonomous organization (DAO) into a stricture that resembles traditional corporations that have a board of directors.
These proposals were created as potential solutions that would boost the efficiency of the DAO and improve its ability to make “high-level decisions.” One of those who formulated the proposal, who is also a member of the MakerDAO Protocol Engineering Core Unit, Sam McPherson, said that the current governance model was inefficient.
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“The status quo is not working… The DAO is not currently set up to make high-level decisions, which is leading to decision paralysis or less informed parties making sub-optimal calls,” the announcement said.
One of the proposals submitted is dubbed LOVE-001. The proposal asks for the creation of a new “oversight Core Unit. If this proposal was passed, it would have created a new unit that could regularly audit the activities of the other critical units. This unit would have a centralized authority over decisions in the protocol.
The LOVE-001 proposal was rejected by more than 60% of the delegated governance tokens. The other two proposals, Makershire Hathaway and MIP75c3-SP1, were also rejected. The MIP75c3-SP1 received the most rejection votes, with more than 76% of governance tokens used to vote against it. This proposal wanted the creation of a fund that would go towards making the protocol “as fast as possible.”
MakerDAO prefers decentralization
These proposals seem to have stirred activity within the protocol because they received the largest amount of governance activity. This overwhelming voting shows that the community is focused on decentralization. MakerDAO is one of the oldest DeFi lending networks and famed for the DAI stablecoin.
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