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Is MakerDAO Becoming ‘a Company Run by Politics’?
MakerDAO CEO Rune Christensen (CoinDesk archives) The same can be said about the recent drama, division and lobbying that gripped Ethereum’s pioneering decentralized money layer, MakerDAO.
A series of proposals that prompted the most voting ever by the Maker community was probably also the most meaningful clash – both in terms of ideology and institutional participation – in the history of any decentralized autonomous organization (DAO).
The big picture is that MakerDAO stands at a crossroads concerning how its overcollateralized stablecoin, DAI, should be governed in the future. That future state may be uncertain, but there’s no question about the importance of a trustless, battle-tested system such as Maker, particularly now, as people bang the drum for decentralized finance (DeFi) and pile censure on opaque and centralized lending platforms.
It’s not the first time MakerDAO has been divided and embroiled in governance drama. In this most recent instance, however, a key area of focus was the debate over Maker’s Lending Oversight Core Unit (known as LOVE), which began its voting process on June 13. This unit successfully lobbied a cluster of venture capital firm investors, such as Andreessen Horowitz (a16z), Paradigm and BlockTower, to use their combined Maker governance token (MKR) […]