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(Kitco News) - MakerDAO, the decentralized finance (DeFi) lending protocol responsible for issuing the DAI decentralized stablecoin, continues to be one of the best examples of how a decentralized autonomous organization (DAO) is supposed to function after the successful approval of the Maker Constitution.
According to a press release shared with Kitcoin Crypto, the MakerDAO community has voted in favor of a governance poll on the MakerDAO forum intended to ratify the Maker Constitution, which will gradually change the operations of MakerDAO and enable the implementation of its “Endgame Era” roadmap.
The Maker Constitution is a set of 11 constitutional articles and 12 scope frameworks that lay down the fundamental conditions for MakerDAO to move into Endgame Era, which “charts a restructuring proposal for the DAO and outlines a path for MakerDAO and DAI to achieve maximum levels of simplicity, decentralization, and resilience.”
Endgame is designed to allow MakerDAO to expand its money market investments in the short term and increase protocol revenue, which will be used to buy decentralized collateral – such as ETH and staked ETH – to reinforce the DAI backing, ensure its stability and maximize its level of decentralization in the long term.
In the months ahead, the implementation of the Maker Constitution will “enable public good and charitable purpose for MakerDAO; achieve a maximum decentralized-state for the DAI stablecoin; incentivize voters towards transparency through regulated governance; elect members of MakerDAO with defined responsibilities surrounding MakerDAO’s governance operations; and introduce SubDAOs as self-governing and self-sustaining entities within the MakerDAO ecosystem,” the press release said.
Once Endgame Era has been fully implemented, “MakerDAO will enter the Endgame State, the ultimate vision for DAI and the Maker ecosystem.” In Endgame State, SubDAOs will be able to operate as independent entities using their own tokens, helping to increase MakerDAO’s level of accessibility and decentralization.
There will be three categories of SubDAOs: FacilitatorDAOs, CreatorDAOs and ProtectorDAOS.
FacilitatorDAOs will be responsible for organizing the Decentralized Workforce of Maker, CreatorDAOs will focus on growth and innovation in the Maker ecosystem and ProtectorDAOs have been tasked with allocating collateral to real-world assets and protecting MakerDAO against physical and legal threats to its real-world asset collateral.
Endgame Era is also designed to increase the resiliency of the DAI stablecoin.
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As part of the rollout of the Constitution, Maker plans on improving accessibility by providing easy-to-use software tools, such as data dashboards and AI chatbots, to make the rules, processes and governance results auditable for all DAO participants.
The Constitution also installs the Constitutional Voter Committees (CVCs), Constitutional Delegates (CDs) and Constitutional Conservers (CCs), which fundamentally restructure how the DAO is organized and help to increase its level of decentralization.
