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The Maker Foundation is about to be disbanded, what does it mean for the industry?

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MakerDAO has achieved full decentralization as the governance process grants several "Core Units" organizational authority over all MakerDAO work.

Original title: "Farewell, Maker Foundation"

Original author: Azuma

Original text Source: Daily Planet

< span>July 20th,Maker Foundation CEO Rune Christensen announced on the official blog that with the governance process, several "Core Units" (Core Unit) have been approved for MakerDAO Organizational management authority for all work, MakerDAO has achieved complete decentralization.

Although there is still no specific timetable, what is certain is that the Maker Foundation, which has long been responsible for leading and managing the Maker protocol, will officially disband in a few months.

As the oldest and most successful DeFi One of the protocols, Maker has been at the forefront of the industry on the topic of "decentralization". The process has also attracted the attention of the industry. Rune Christensen himself made it clear a long time ago: "The current reliance of the Maker ecosystem on the Maker Foundation is unsustainable in the long run. The Maker Foundation needs to accelerate its dissolution and begin to transfer its risk management capabilities to the community."< /span>

In April 2020, the Maker Foundation first announced plans to gradually hand over governance power to the community over the next two years.
In May 2020, MakerDAO’s first governance proposal MIP0 was released, defining the Governance proposal framework for a decentralized autonomous organization (DAO).
In March 2021, MakerDAO’s 39th Governance Proposal (MIP39) was released, After the Maker Foundation is disbanded, how will MakerDAO continue to operate stably with a "core group" as a unit.
In May 2021, Maker took another key step on the road to decentralization , the Maker Foundation voluntarily gave up the management authority of the development fund of 84,000 MKR (the price was as high as 530 million US dollars at the time), and transferred the funds to the DSPause Proxy contract of the governance module at the Ethereum block height 12361485. All MKR holders Governance can collectively decide what to do with that money.

When the development fund was transferred, many members of the community had guessed the Maker Fund The final transfer of authority will be in progress, and the dissolution of the foundation may not be far away. With Rune Christensen voicing this morning, that conjecture was formalized.

Since the official launch of MakerDAO in 2017, the Maker Foundation has played a key role in the development of the project. Under the leadership and management of the foundation, the supply of DAI has grown from zero to more than 5 billion pieces, Maker smart contracts has exceeded 8 billion US dollars, and the Maker protocol has gradually grown into a solid cornerstone of the entire DeFi world. As Rune Christensen himself summed it up: " The Maker Foundation has played a special and irreplaceable role in the development of the Maker protocol. "

Now, the Maker Foundation has basically completed its mission. With the promotion of the Foundation, the Makar protocol will transition to a brand new stage, the future development and operation of the protocol will be jointly decided by thousands of community members.

In terms of specific working methods, after the dissolution of the Maker Foundation, the Maker agreement will be based on "core group " as a unit and continue to operate with the support of community governance. The so-called "Core Unit Framework" is a new structure under the DAO system. Its operation needs to strictly follow the "Core Unit Framework" (Core Unit Framework) and is responsible for managing and coordinating contributors in all aspects. The establishment of each core group requires a proposal application, which must be approved by the governance of the Maker community.

For the Maker Foundation itself, the former is the only option to keep the Maker protocol prosperous. Rune Christensen also mentioned in the article: "From the beginning of Maker, every participant has been working tirelessly to design a more scientific governance framework... We realized that there is only one independent, passionate, loyal Only the community can drive the Maker Protocol to success.”

From the perspective of the industry, Maker's decentralization efforts will undoubtedly have a profound demonstration effect on the entire DeFi world. With the final dissolution of the Maker Foundation, it will become the first legal entity in the encrypted world to give up its asset control and its transcendent status in the ecology in order to realize DAO. Projects set benchmarks.

Finally, it’s time to talk tothemost successful DeFi in history The foundation said "goodbye". But there is no need to be sad. Although the dissolution of the foundation is a foregone conclusion, all the people who have contributed to the Maker agreement have not left. Just like Rune Christensen himself said: "I will rest first for a while, and then come back again as an independent community member.”