84000 MKR tokens on Maker Foundation have been diverted from its development fund to the governance module. This is a massive milestone for the protocol towards achieving decentralization.
The foundation released these details in a blog post stating that it transferred MKR tokens to a smart contract on the governance module. The tokens were now under the complete control of maker governance. To verify, users can do so through a transaction of Ethereum.
The foundation also added that no conditions and expectations had been set regarding the transfer. Holders of MKR tokens will have total independence in deciding whether to use their MKR tokens for future goals.
Achieving further decentralization
The blog post also highlighted some milestones the foundation had achieved towards decentralization. This includes the completion of technical features on the liquidation engine and the core unit of DAO. The only thing left to achieve complete decentralization was the company’s dissolution.
The company’s dissolution is expected to complete by the end of the year. However, the foundation has retained a below 1% value of the MKR supply tokens. The foundation will also continuously publish reports to show the progress of the dissolution process.
MakerDAO Governance Poll
While also giving this announcement, MakerDAO also stated about the launch of a governance poll. This would be used to explain whether the vaults would be expanded about the Liquidations 2.0 Framework. If the governance poll is approved, the new liquidations engine will be applied on various Maker vaults, including Uniswap, Decentraland, Aave, Compound, Balancer, and more.
Once the relevant stakeholders vote and pass the governance poll, the upgrades to the liquidation engines will be passed within a month. The enhancements are expected to enhance the liquidation process for the firm. This will be achieved by offering a predictable and stable ecosystem, which will provide security against unstable liquidations.
Unstable liquidations have caused significant issues for MakerDAO. The firm suffered from under collateralization in March last year when a widespread market crash was experienced. This crash prompted the firm’s move towards decentralizing governance a few weeks after the crash.
MakerDAO is doing quite well in the DeFi space. The company is currently listed as the third-largest DeFi protocol. It comes after the highly ranked protocols, Aave and PancakeSwap. Maker’s total value locked (TVL) stands at around $9.75 billion. MakerDAO regularly engages with the Maker community to get insights on areas that need upgrades and others.