Maker DAO – the leading collateralized stable-coin project announced on July 20 that it has successfully completed the transition to a decentralized autonomous organization (DAO) structure and the current Maker DAO foundation is all set to dissolve in the coming months, former CEO Rune Christensen said in a post titled “Maker DAO Has Come Full Circle”.
The blog post declared that the Maker DAO protocol has now gone fully autonomous through Maker Improvement Proposals (MIPs) and Core Units Framework, self-sufficient and in the hands of the global community. It also says that the foundation has bootstrapped the project and is confident that the core governance processes are now enough to govern the protocol.
Introduced in 2015, the DAI – main product of the Maker DAO protocol has grown to be the most successful and used decentralized stable-coin, used to hedge against the volatility of the crypto-assets. It’s an essential part of the DeFi world and currently around $5.2B+ worth of the stable-coin are in circulation and $8B+ assets are locked in the protocol. However lately, the protocol has faced criticism over it’s unhealthy reliance on large amounts of another stable-coin USDC to maintain peg closer to $1, a corrective action introduced for DAI getting off-peg during times of volatility.
About Maker DAO
Maker DAO provides the core DeFi functionality of stablecoin, it does so by issuing the DAI token (pegged to 1 USD) backed by a basket of crypto-assets (ETH, LINK etc.) deposited into Maker vaults. The DAI token is always overcollaterized, meaning that the protocol holds assets worth more than the DAI tokens issued, it’s necessary to ensure stability and protect against volatility. It allows users to access credit in the form of DAI stablecoin without selling their assets, which can later be recovered by paying back debt and interest to the protocol.