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MakerDAO Draws Ire from Community Members Over Board Shakeup

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MakerDAO Draws Ire from Community Members Over Board Shakeup

The MakerDAO Ecosystem Growth Foundation in a blog post stated that it wants to bootstrap its system so that it can work as a totally autonomous organization. Moreover, this process is to be carried out under the oversight of nine board members that are all anonymous. It is from here that the new problems have emerged for Maker DAO.

Later in another blog post, however, the organization verified that the board needs to be reconstituted.

About MakerDAO

The MakerDAO Foundation is a not for profit organization which had launched a dollar pegged cryptocurrency called the DAI. The DAI is stabilized through collateralized debt positions, dynamically. Maker is a platform driven by a smart contract which uses autonomous feedback mechanisms as well as incentivizes external actors for creating the stability of DAI.

The Controversy

The anonymity of the members has left a bad taste in the mouths of the MakerDAO community. The nine anonymous members own about 27% of all the DAI tokens. Moreover, when MakerDAO, came up with the news of the reconstituted board consisting of members of the decentralized community of stakeholders apart from the technical members, it only aggravated the matter.

On a conference call interacting with the community the CEO of the organization, Brian Avello, was grilled by many community members and a former legal consultant of the board.

The questions were related to whether the by-laws of the company and the proceedings of the board meetings could be released, and whether the proprietary trading desk of the organization is a for-profit initiative.

The Response

The response from the CEO seemed inadequate. He almost dismissed the questions based on security concerns of the organization.

These questions of transparency become most significant as the community goes to vote on increasing the stability fee of the firm. Fifty thousand of the governance tokens are staked in favor of a 4% increase.  Eventually, for the company to maintain the loyalty of the community members, it needs to create a mechanism for transparency. Only this way will the company be able to develop a sustainable model.

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I am a content writer with interests in life sciences and blockchain. I believe that blockchain has the potential to transform every aspect of human endeavor. I love surfing the internet, reading, learning new things, and trying new cuisines.

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