Community Governance Approves MakerDAO’s New Constitution in Support of Rune Christensen’s “Endgame” Plan

It is reported that Community Governance recently approved the newly proposed constitution of MakerDAO, which is an important step towards Rune Christensen’s “Endgame” plan. One part of the Endgame project is to transform the existing Maker core unit team into a metaDAO, also known as subDAO. Each has its own governance token. As part of the transition, the existing agreement engineering core department of MakerDAO will be disbanded at the end of this month and enter a new operational framework. Many engineers will also leave the team.  

MakerDAO Community Governance approved the newly proposed Endgame plan

In a significant move towards the realization of the “Endgame” plan, the Community Governance has recently approved the newly proposed constitution of MakerDAO. According to the plan, the existing Maker core unit team will transition into a metaDAO, also known as subDAO, with each having its own governance token. As part of the transition, the existing agreement engineering core department of MakerDAO will be disbanded by the end of this month, and many engineers will leave the team. In this article, we discuss what this all means, what to expect and what questions remain unanswered.

1. What is MakerDAO?

MakerDAO is a decentralized platform that allows users to create and trade a stablecoin called Dai. Dai is pegged to the value of the US dollar and is backed by a basket of assets, with Ethereum being the largest. MakerDAO’s stability mechanism is governed by the DAI token holders, who delegate decisions to MakerDAO’s governance system.

2. The MakerDAO Governance Model

The governance model of MakerDAO is quite unique. The governance token holders, known as MKR holders, make decisions on the future direction and operation of MakerDAO, including changes in the monetary policy, fee rates, as well as selecting the teams that will maintain and develop the system. The MKR holders elect the MakerDAO Foundation’s Board of Directors, who then appoint the MakerDAO core unit team.

3. The “Endgame” Plan

Rune Christensen, the founder of MakerDAO, recently unveiled a long-term plan for the project known as the “Endgame” plan. The plan is designed to make Dai the most accessible, decentralized, and strongest digital currency in the world. One of the key components of the plan is to transform the existing Maker core unit team into a metaDAO, also known as subDAO, with each having its own governance token.

4. The Newly Proposed Constitution

The newly proposed constitution for MakerDAO was approved by the Community Governance, and it outlines the details of the transition to a subDAO system. As part of the transition, the existing agreement engineering core department of MakerDAO will be disbanded by the end of this month, and many engineers will leave the team. The transition is designed to increase sustainable network security and enhance the resistance of the system.

5. What Can We Expect From the Transition?

The transition is expected to cause some disruption, but the long-term benefits will outweigh the short-term challenges. The move towards a subDAO system provides more transparency and accountability, and the governance tokens held by each subDAO will enable the community to have a more direct say in the direction of MakerDAO.
However, it is still unclear how this transition will impact the development and maintenance of MakerDAO’s smart contracts. The members of the agreement engineering core department will undoubtedly be missed, and the MakerDAO community may need to find new ways to recruit and onboard top talent.

6. What Questions Remain Unanswered?

Despite the many benefits of transitioning to a subDAO system, some questions remain unanswered. For instance, there is still some uncertainty over the role that the MakerDAO Foundation’s Board of Directors will play in the new governance structure. Additionally, it is unclear how the new structure will impact the compensation of the MakerDAO core unit team members.

7. Conclusion

The approval of the new constitution of MakerDAO by the Community Governance is a significant step towards the realization of the “Endgame” plan. The move to a subDAO system will provide more transparency and accountability, which is crucial in maintaining sustainable network security. However, some questions remain unanswered, and the transition may cause some disruption, but the long-term benefits are worth it.

FAQs

1. What is MakerDAO, and what is Dai?
MakerDAO is a decentralized platform that allows users to create and trade a stablecoin called Dai. Dai is pegged to the value of the US dollar and is backed by a basket of assets, with Ethereum being the largest.
2. Who governs MakerDAO?
The governance token holders, known as MKR holders, make decisions on the future direction and operation of MakerDAO.
3. What is the “Endgame” plan of MakerDAO?
The “Endgame” plan is designed to make Dai the most accessible, decentralized, and strongest digital currency in the world. One of the key components is to transform the existing Maker core unit team into a metaDAO, with each having its governance token.