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MakerDAO, the decentralized autonomous organization that governs the Dai (DAI) stablecoin, has passed a new proposed \u201cconstitution\u201d intended to formalize governance processes and help prevent hostile actors from taking over the protocol, according to the official forum page for the proposal.<\/p>\n
\nThe Maker Constitution has been approved by Maker Governance.<\/p>\n
The Endgame Era is upon us.https:\/\/t.co\/OKf9Kgo4dp pic.twitter.com\/XqzsP44faQ<\/a><\/p>\n
\u2014 Maker (@MakerDAO) March 27, 2023<\/a><\/p><\/blockquote>\n
According to the proposal\u2019s text, a constitution is needed because the Maker Protocol \u201crelies on governance decisions by humans and institutions holding MKR tokens,\u201d which can \u201cexpose weaknesses and vulnerabilities that can result in the failure of the Maker Protocol or the loss of user funds.\u201d<\/p>\n
To avoid this failure, the Maker Constitution engages in \u201calignment engineering\u201d to \u201clock in the core commitments\u201d of Maker’s community, the document said. <\/p>\n
The governing document creates several categories of participants with different powers and responsibilities. For example, constitutional conservers (CCs) have the job of \u201cfacilitating and protecting the Maker Governance process\u201d by ensuring that the constitution is followed by other participants. CCs can become constitutional voter committee members (CVCMs) or constitutional delegates (CDs). <\/p>\n
CVCMs craft position documents for voters to consider, and CDs operate smart contracts that allow MKR holders to delegate their MKR without losing custody of their tokens.<\/p>\n
Related: <\/strong>MakerDAO votes to keep USDC as primary collateral<\/strong><\/em><\/p>\n
Each office has powers to remove listings of officers from the app\u2019s front end if they are believed to be violating the constitution. For example, a CD can ban a CVC from the front end if the CVC is believed to be deceiving the voters who are delegating to it.<\/p>\n
The Maker constitution proposal passed with 76.04% of the MKR vote. Less than a quarter (23.95%) of MKR votes went against the proposal, and 0.01% abstained.<\/p>\n
Despite the vote in its favor, some Maker users have openly criticized the constitution as being authoritarian. For example, the pseudonymous Twitter user PaperImperium has claimed that it forces users to be \u201cmuzzled and forbidden from communicating with anyone at or around Maker about Maker\u201d due to restrictions it imposes on communications from constitutional delegates.<\/p>\n
\nIn several hours, the @MakerDAO<\/a> 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<\/p>\n
\u2014 PaperImperium (@ImperiumPaper) March 27, 2023<\/a><\/p><\/blockquote>\n
Maker’s constitution is one step in the process of creating what Maker founder Rune Christensen called\u00a0the \u201cEndgame Plan\u201d for the protocol, which he believes will convert MakerDAO into a decentralized organization that keeps DAI stable as it 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 piecemeal fashion.<\/p>\n
DAI is an algorithmic stablecoin pegged to the U.S. Dollar. It temporarily lost its peg on March 11 due to fallout from a banking panic in the U.S., but then recovered it after MakerDAO passed emergency measures to limit the ability of users to mint DAI with USD Coin (USDC).<\/p>\n<\/div>\n