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MakerDAO has apparently gone full circle, with the organization announcing a complete decentralization of its operations.
In a blog post published on Tuesday, MakerDAO’s founder Rune Christensen stated that the decentralized autonomous organization (DAO) was fully “self-sufficient” now, which means the Maker foundation has fulfilled its purpose. As a result, the foundation will be formally dissolved in the upcoming months, although no specific date has been offered until now.
MakerDAO Shifts to Decentralization, Maker Foundation to be Closed Within Months
The oldest decentralized finance(DeFi) protocol MakerDao is finally moving to decentralization and closing its foundation, which was meant to exist only “temporarily.” The organization has enjoyed widespread popularity in the crypto sphere over the years, with more assets locked in its smart contracts than other DeFi projects for most of the time.
From its outset, the DAO worked towards building an infrastructure that supported the new generation of financial services making their way into the market. Its foundation was specifically designed to supervise the protocol’s development in the early days until MKR token owners were prepared to take over the management of all the aspects related to the project.
Well known for its stablecoin DAI, MakerDAO was always aiming for decentralization, with the Maker foundation serving as a “means to an extraordinary end.”
The Journey to becoming Decentralized
Back in 2019, Christensen had suggested that he was interested in a project that he wouldn’t have to lead. He has also been hinting at decentralization from the earliest days of Maker. In that respect, his approach is similar to the crypto trading pioneer Shapeshift, which will soon hand over its duties to a DAO headed by the holders of FOX tokens.
The Maker Foundation which paved the way for the organization to go back to its status of a DAO was founded in 2018. In 2019, the foundation found itself at the center of a tense situation, with its board members split on the company’s reconstitution.
In early 2020, Christensen laid out the plans to attain decentralization, with a focus on distributing more power among the community members and paying them for their contribution.
The global Maker community will now be wholly responsible for all the decisions about the DAO and any related assets.
For Christensen, Maker’s decentralization means that “future development and operation of the Protocol and the DAO will be determined by thousands or perhaps millions of engaged, enthusiastic community members, all determined to extend the benefits of digital currency to people across the globe.”