MakerDAO Adopts A New “Constitution” To Formally Establish Its Governance

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MakerDAO

As per the official main site for the proposition, MakerDAO, the localized autonomous association that oversees the DAI stablecoins, has adopted a new suggested “constitution” designed to create governance procedures and aid in preventing aggressive actors from seizing control of the protocol. 

Based on the text of the proposal, this constitution is of utmost importance since the MakerDAO Protocol depends primarily on management choices by individuals and institutions retaining  MKR currencies which have the potential to reveal loopholes and vulnerabilities resulting in the collapse of our MakerDAO Protocol. The constitution is required as a consequence of the above.  

The Constitution To Protect Sensitive Information Of The MakerDAO Community

The governing agreement establishes a number of participant groups each with unique rights and obligations. In order to safeguard the process of governance, it needs to be ensured that everyone adheres to the rules.

When police are suspected of going against the laws every office has the authority to have their listings removed from the application itself. For instance, if a CVC is thought to be misleading the voters it has been receiving delegations from, the CD may decide to outright prohibit it.

With approximately 76.04% of Maker’s DAO votes cast in favor of the MakerDAO constitution, it was approved. Just 24.95 percent of votes for MKR were against the motion, and 0.01% were cast in abstention. Although the constitution was approved, some users of the app have publicly attacked it for being totalitarian. 

In order to make what our MakerDAO creator Rune Christensen referred to as the protocol’s end plan which he believed would have transformed the app into a localized institution that maintains DAI’s stability as it is nearly the world’s secured currency, MakerDAO’s constitution is at work.