Warning of Centralization in MakerDAO

02/16/2023 07:39 • AI Insights • 100 views

On February 16, Hasu, the strategic director of Flashbots and the strategic consultant of Lido Finance, forwarded a message on social media that a series of proposals of MakerDAO next month may make the agreement more centralized, and the future agreement governance may be in the charge of more than a dozen council and committee members. Hasu said that Rune Christensen, the founder of MakerDAO, was no longer suitable to lead Maker alone. The encryption industry was in urgent need of decentralized stable currency, but there was still no reliable alternative to DAI. MKR representatives needed to be organized, and MKR holders could no longer be silent.

Lido Finance consultant: There will be many proposals to make Maker more centralized in March

Analysis based on this information:

In a social media post on February 16, Hasu, strategic director of Flashbots and strategic consultant of Lido Finance, drew attention to a series of proposals by MakerDAO that could lead to centralization of the platform. MakerDAO is a decentralized autonomous organization on Ethereum that issues the stablecoin DAI, which is pegged to the US dollar. The proposals are set to be implemented next month and could result in more than a dozen council and committee members taking charge of the future agreement governance.

According to Hasu, the founder of MakerDAO, Rune Christensen, is no longer suitable to lead Maker alone. The encryption industry is in urgent need of a decentralized stable currency, but there is still no reliable alternative to DAI. Maker representatives need to be organized, and MKR holders can no longer remain silent.

MakerDAO has been praised for being a decentralized organization that offers a stablecoin that is resistant to wild price swings. However, the proposals suggested by MakerDAO indicate that the platform’s governance may be shifting towards centralization. The proposals would reduce the power of MKR holders, the token holders who have voting rights on platform governance.

The proposed changes would establish a governance facilitator role whose members would oversee the Maker Improvement Proposals (MIPs) process. Another proposal suggests the establishment of a new MakerDAO community caucus, which would be tasked with discussing and summarizing decentralized finance trends for the benefit of MakerDAO. In addition, a governance communications lead role would be created to improve communications between the community and the platform.

Hasu’s warning about these proposals highlights the growing concern among the crypto community about centralization of blockchain technology. The crypto revolution was founded on the idea of decentralization, of enabling peer-to-peer transactions and removing intermediaries. Any signs of centralization or concentration of power automatically generate backlash in the crypto community.

In conclusion, the current situation in MakerDAO signals a significant shift towards centralization. The proposals and the warnings have generated concern among the crypto community. It is only a matter of time before the actual implementation takes place, and we see the impact it will have on the platform’s governance and evolution.

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Warning of Centralization in MakerDAO

Lido Finance consultant: There will be many proposals to make Maker more centralized in March

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