The community governance overseeing MakerDAO, the decentralized protocol that powers the stablecoin DAI, has voted to adopt the “Maker Constitution.”
This is a significant step towards realizing the Endgame plan, which is designed to decentralize governance and drive innovation in decentralized finance (DeFi).
The plan involves implementing 14 Maker Improvement Proposals (MIPs) that collectively establish rules and frameworks to enable the launch of Endgame.
The Maker Constitution, also known as MIP101, is the foundation of Endgame and comprises 11 constitutional articles and 12 scope frameworks
The constitution will implement the following changes at MakerDAO:
- Create a “purpose system” to enable token allocations to SubDAOs, which will determine charities to donate to through community votes.
- Make strides toward DAI stablecoin decentralization through MKR token generation in the event there is not enough DAI collateral.
- Introduce a standardized and regulated application to align voter incentives and prevent voter manipulation.
- Invite “constitutional conservers” or external entities to facilitate governance operations.
- Create “constitutional voter committees” consisting of groups of MKR holders tasked with reaching compromises with other teams to minimize chances of making bad decisions.
- Establish a protocol delegation system that will enable the delegation of MKR tokens as collateral to generate more DAI to increase voter incentive.
- Continue the function of Core Units and project-based funding.
- Launch six new SubDAOs alongside the activation of Endgame.
- Create modifiable subcomponents designed to move MakerDAO toward greater decentralization.
- A new set of boundaries to manage the modifiable subcomponents or “Scope Frameworks.”
- A process to make amendments to the Maker Constitution.
Its key provisions include the creation of a purpose system to allocate tokens to SubDAOs, the standardization of voting applications, the introduction of constitutional conservers and voter committees, and the establishment of a delegation system.
The approval of the Maker Constitution by 76% of delegates marks a significant milestone in the development of MakerDAO’s Endgame plan, which has been under consideration since May 2022.
While some delegates, such as the London Business School Blockchain Association, voted against the proposal due to concerns about certain aspects of the constitution, the majority of the community expressed support for the plan.