As per recent reports, the Maker Foundation has introduced a three month transition period to hand over 100% governance of the Maker token contract to MakerDAO token holders. The foundation claimed that this is a major step towards imparting completely decentralized governance in the blockchain space.
The transfer of MKR token control from the Foundation to the Maker Governance community is now complete!
The MKR token is now 100% in control of MKR holders.
— Maker (@MakerDAO) March 25, 2020
Urging users to continue voting smartly, the Maker Foundation stated, “While voter apathy can threaten any election process, it can do harm to a project’s decentralization efforts. Without enough community passion and well-intentioned participation, a community-governed system can become vulnerable and struggle to succeed.”
After launching the Multi-Collateral Dai protocol last year, the Maker Foundation announced that it would pass the control over MKR tokens to the above-mentioned protocol’s smart contract. Earlier this year in January, it implemented the MkrAuthority contract on the Ethereum mainnet and integrated MKR token’s authority address into that. Eventually, as per today’s announcement, the foundation has released the control of MKR token to the MkrAuthority contract, subject to a three month transition period.
Talking about the move, chief executive of the Maker Foundation, Rule Christensen argued that this is a major step towards complete decentralization. He went on to add, “Today’s news is momentous. By completing its commitment to transfer the MKR token contract to MKR holders, the Maker Foundation continues to move toward a completely self-sustaining MakerDAO. And it’s just the beginning. We will continue to ready the community for complete decentralization in the weeks and months ahead.”
More about MakerDAO
Today’s move towards decentralized governance comes after the firm’s first-ever debt auction worth $4.3 million.
In the recent market scenario, ETH plummeted by more than 50% in the last two days, which impacted these collateralized loans by deeming them under-collateralized, thus activating a debt auction.