• The MakerDAO recently passed a new constitution aimed at formalizing its governance process and bolstering decentralization.
• This constitution employs “alignment engineering” to align the interests of the entire ecosystem, establishing clear definitions and delineations of roles within the governance framework, and enforcing a separation of concerns.
• The Maker Constitution also introduces a system for incubating SubDAOs and enables fast-moving innovation, growth, and experimentation.
MakerDAO Adopts New Constitution
MakerDAO, the decentralized autonomous organization (DAO) behind the DAI stablecoin, has adopted a new „constitution“ aimed at formalizing its governance process and bolstering decentralization. This is part of an effort to transform MakerDAO into a truly decentralized organization that could potentially become the world’s reserve currency.
The Maker Constitution acknowledges the inherent resilience of decentralized systems like Bitcoin and Ethereum while recognizing that Maker Protocol relies on human decisions made by $MKR token holders which may be vulnerable to weaknesses or failure. To address these risks, it employs „alignment engineering,“ designing mechanisms, incentives, and shared habits to align the interests of the entire ecosystem. It establishes clear definitions and delineations of roles within the governance framework, ensuring transparency and reducing complexity while discouraging actions that risk taking it towards failure. It also emphasizes robust grassroots community participation in budgeting and resource allocation as well as control over governance privileges.
In order to counterbalance rigidity and immutability, this constitution introduces a system for incubating SubDAOs which operate as semi-independent DAOs linked to Maker Governance enabling fast-moving innovation, growth, and experimentation with delegation of responsibility for complex areas. Despite its approval with 76.04% MKR votes some users have criticized it as authoritarian due to restrictions on communication from constitutional delegates inhibiting their ability to gather information effectively “muzzling” them .
The purpose of this constitution is to fortify protocol’s governance by enhancing decentralization with an Endgame Plan; ultimately achieving MakerDAO’s ambitious goals while promoting its growth & adaptation in order to ensure successful functioning & self-sustaining equilibrium amongst MKR token holders who can effectively governthe DAO .
The passing of this new constitution is poised to play an important role in furthering stability & functionality while promoting trustworthiness & accountability within DAI’s network infrastructure making it more resilient against adversarial events & remain uncensorable in times ahead .