The MakerDAO Foundation has returned 84,000 MKR tokens from their development fund to MakerDAO’s governance module. This is a milestone in the decentralization project.
In a blog post dated May 3, the foundation notes that MakerDAO has “no conditions or expectations” placed on the tokens returned, with Maker Governance now having complete control over the tokens.
The announcement states that with the return of development and the completion of recent technical contributions to Maker’s liquidation machine and the framework of the DAO core entity, the foundation will now focus on working towards its own resolution to further decentralize the protocol :
“The foundation is now turning inward to focus solely on its dissolution.”
To manage and fund the obsolescence transition, the Maker Foundation has kept less than one percent of MKR’s offering. The foundation aims to be dissolved by December 31, 2021. The foundation will continue to publish progress reports until the liquidation is completed.
On the same day, MakerDAO announced the start of a governance survey to determine whether the vaults subject to the Liquidations 2.0 framework should be expanded. If approved, the updated liquidation engine will be used for Maker’s Uniswap, 0x, Basic Attention Token, Loopring, Compound, Balancer, Kyber Network, Decentraland, Aave and renBTC vaults.
If the governance survey is passed, an executive vote is expected to complete the upgrades within 30 days of the vote.
The updated mechanism aims to make the liquidations conducted by the protocol more predictable and stable in order to protect against the aggressive cascading liquidations that resulted in MakerDAO becoming undercollateralized during the Black Thursday crash in March 2020. The project switched to decentralizing governance in the weeks following the Black Swan event.
MakerDAO is currently the third largest DeFi protocol behind Aave and PancakeSwap with a total value of $ 9.75 billion, according to DeFi Llama.