Maker DAO Switches To Complete Decentralization



Maker DAO – the leading collateralized stable-coin project announced on July 20 that it has successfully completed the transition to a decentralized autonomous organization (DAO) structure and the current Maker DAO foundation is all set to dissolve in the coming months, former CEO Rune Christensen said in a post titled “Maker DAO Has Come Full Circle”.

The blog post declared that the Maker DAO protocol has now gone fully autonomous through Maker Improvement Proposals (MIPs) and Core Units Framework, self-sufficient and in the hands of the global community. It also says that the foundation has bootstrapped the project and is confident that the core governance processes are now enough to govern the protocol.

Introduced in 2015, the DAI – the main product of the Maker DAO protocol has grown to be the most successful and used decentralized stable-coin. It serves as a hedge against the volatility of the crypto-assets. It’s an essential part of the DeFi world. Currently, around $5.2B+ worth of stablecoins is in circulation. Another $8B+ assets are locked in the protocol. However, the protocol faced criticism over its unhealthy reliance on USDC to maintain a peg closer to $1. Corrective actions came into action for DAI to get off-peg during times of volatility.

About Maker DAO

Maker DAO provides the core DeFi functionality of stablecoin, it does so by issuing the DAI token (pegged to 1 USD) backed by a basket of crypto-assets (ETH, LINK, etc.) deposited into Maker vaults. The DAI token is always overcollateralized. This means that the protocol holds assets worth more than the DAI tokens issued. Its necessary to ensure stability and protect against volatility. It also allows users to access credit in the form of DAI stablecoin without selling their assets. Users can later recover by paying back debt and interest to the protocol.



You might also like


More from Blockchain Companies

Wallfair CANCELS its EVNT Tokens along with other Radical Changes…Stay Away?

In this article, we’ll talk about additional changes that were made in the core structure of the company, including the


Solana To Be “Restarted” By The Validator Committee After Several Hours Downtime

It’s a difficult day for Solana as the smart contracts blockchain encountered “excessive load and memory consumption” which caused repeated


Ethereum Scaling: Polygon Adds To It’s Full Stack Scaling

Polygon is moving past its Plasma solution and the leading Ethereum scaling solution announced on Aug 13 that it has