In the weekly governance call, CEO of the Maker Foundation Rune Christensen presented the Self-Sustaining MakerDAO Initiative that would result in the dissolution of the Maker Foundation, the key entity leading development and governance of MakerDAO. As part of the new Governance Paradigm, Rune discussed three core pillars:
- Elected Paid Contributors (EPCs) and Domain Teams
EPCs and Domain teams would effectively replace the various functional groups within the Foundation which has been funded through various token sales, but going forward will need to be paid through the protocol itself. - Maker Improvement Proposals (MIPs)
MIPs will look similar to other improvement frameworks and are designed to standardize the upgrade process from both a technical and social perspective. - Vote Delegates
Delegates will have the ability to vote on behalf of MKR holders who don’t wish to actively participate in the governance process allowing them to have a say in governance without needing to stay informed enough to make decisions on complicated matters.
Why it matters
- Open Finance teams have often been criticized for operating under the guise of decentralization while in reality, a central entity maintains near full control. Dissolving the organization that has maintained substantial power of the protocol would be another major step towards the goal of fully decentralizing.
- The Maker Foundation has operated like a traditional startup with legal, accounting, marketing departments, etc. all funded through money raised from venture capital. Once it's dissolved, all of these functions will have to continue to serve their respective functions in a more decentralized manner which could create substantial operational hurdlers and couple prove to be unsustainable in the long run.