Decentralized finance (DeFi) lending pioneer MakerDAO has taken the final steps to dissolve its foundation on the path to fully decentralized governance.
In an announcement on July 20 titled “MakerDAO Has Come Full Circle” Maker Foundation CEO, Rune Christensen, declared that the platform is now “completely decentralized.”
He added that the Foundation will formally dissolve within the next few months and the DAO is now fully self-sufficient. Christensen confirmed that the global community is now responsible for every aspect of the Maker protocol as several core units approved by governance efficiently organize all areas of work within the DAO.
MakerDAO is a crypto industry stalwart, having been founded in 2014 and having accrued more than $8 billion in smart contract-locked collateral since.
Maker through the years
Christensen highlighted the progress the protocol has made since he first envisioned the first iteration of the DAI stablecoin called the eDollar in 2015. Since then, the protocol has gone from a DAO, created by a handful of developers, to a fully-fledged Foundation tasked with bootstrapping the project, and back to a DAO again.
He followed up with a list of Maker milestones from the launch of its first single collateral stablecoin to the more recent liquidations system upgrades. The MakerDAO CEO ended with thanks to all of the developers, adding that the future of the project is now in the hands of the community.
“Complete decentralization of Maker means that future development and operation of the Protocol and the DAO will be determined by thousands or perhaps millions of engaged, enthusiastic community members, all determined to extend the benefits of digital currency to people across the globe.”
In May, the protocol returned a large sum of funds from the developer fund back to the DAO to further accelerate its decentralization drive.
MakerDAO enjoyed a long stint as the leading DeFi protocol by total value locked, but it had a tumultuous year in 2020 when as much as $4 million in collateral was liquidated in the ‘Black Thursday’ event.
MKR price update
Maker prices have been battered along with the rest of the crypto market, having lost 11.5% over the past seven days. Currently, MKR is trading up 3.6% on the day at $2,230 according to CoinGecko.
The DAO governance token hit an all-time high of $6,300 on May 3 but has since dumped 65% from that peak. In terms of TVL, Maker is currently ranked sixth by DappRadar with $5.5 billion locked.