MakerDAO is the oldest and arguably most effective protocol in DeFi. Even with a $1.6B market cap, MakerDAO is still experiencing growing pains due to an unpopular decision it made on one of its teams (MKT-001). Slightly more than 49% voted for getting rid of MKT-001, while 47% voted against it.
MKR tokens provide the project’s members with the power to vote, or members can delegate their token’s voting power to other community members.
Maker governance voted for involuntary removal of one of its Core Units from the DAO for the first time in one of 16 polls closed on Jan. 24.
Maker’s Core Units allow different types of work to be organized. The protocol’s governance ratified a framework for their establishment in March, so the use of Core Units within the DAO is still relatively new, and the offboarding of one has not been tested.
DAO Governance Calls: What Happens If The Majority Disagrees With A Proposal?
Members of DAO have begun looking for ways to modify the current process due to its abruptness.
During a Governance and Risk call for the protocol, Justin Case, a delegate for Maker voters suggested that there should be an option where it is possible to signal disagreement with facilitators’ actions.
MKT-001 member Seth Goldfarb noted on the Maker forum that the Core Unit received 100% support for their latest budget before being formally offboarded by the DAO.
The other delegate for MKR votes, Tim Black, pointed out the pitfalls of an overly slow process for involuntary offboarding. “I think there needs to be a balance struck here, because there are situations when we want to offboard relatively quickly if there are bad actors or malicious intent, or if something adversely affects the DAO,” he said on the call.
MakerDao Announces Major Change To Offboarding Process
PaperImperium, as they are known on Twitter and who surfaced the vote, reports that about 12 people are working on the to-be-proposed changes to the offboarding process.
PaperImperia, who was listed among the contributors of this draft proposal to The Defiant, said that the offboarding issue stems from DAO never letting a Core Unit go before. When asked what he thought about it, PaperImperia responded by saying that this is simply because there are no precedents in place for when people leave an organization.
Everyone isn’t good at anything their first time, think of the first time you drove a car. “So it shouldn’t be a surprise that there have been improvements.”.
The new offboarding proposal is primarily the work of GFX Labs, a governance consulting firm. A governance proposal was put forward by the group to add a .01% fee tier to Uniswap, which has led to a growth of the decentralized exchange (DEX) in stablecoin trading volume.
According to their voting history, GFX Labs voted against offboarding Maker’s content product Core Unit.
Maker disbanded their foundation, a centralized entity, on July 1, so the Core Units have only been sailing the ship exclusively for six months.
Making a decision about how to have offboarding work preemptively is a good idea for other DAOs looking to decentralize. “It needs to be better than just posting something, having a discussion, then voting,” said PaperImperium.
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