Questions Arise Over Who Is In Charge of MakerDAO As Community Becomes Uneasy
The community of the MakerDAO has been voicing their qualms lately. The platform recently had a board shakeup, which is still ongoing and started at the weekly community call on Tuesday. Issues arose from the community, specifically concerning the burning question on everyone’s mind – who exactly has control of the $190 million in the governance tokens for MakerDAO?
A previous blog post from the foundation said that they are working on a system that would basically thrive as “a fully decentralized organization.” Presently, the development funds for the network are watched over by nine board members, which is about a quarter of the total number of MakerDAO governance tokens that were created. At no point have these nine board members ever had their identities exposed.
Another post from yesterday explained that the reorganization would make it possible for the board to add both “technical members” and “a decentralized community of stakeholders.” Brian Avello, the general counsel to the MakerDAO Foundation, told CoinDesk that it would be a better situation for the company to add individuals to the board that have “deeper business experience.”
Avello was responsible for handling multiple tough questions at the community call, which discussed the organizational structure of the company. One of the most direct question came from Chris Padovano, who used to be a legal advisor to the company.
When Padovano spoke at the call, he asked about when the foundation would be publicly releasing the bylaws, but Avello did not provide a concrete answer. Even though he was questioned particularly about the correspondence of board members. Responding in the third person, Avello told Padovano that “this isn’t Brian’s deposition here where you’re given the opportunity to try to paint me into some sort of corner.” He added that the matter simply cannot be discussed.
Avello was also asked why there’s certain individuals that have to be removed from the board, but he expressed that he couldn’t talk about this issue via public call. Speaking with CoinDesk, head of communications Mike Pocarno said that it is normal for there not to be a full transparency in these kinds of organizations. However, Avello added that the identities of the board members were not released because of security concerns, since they sign off on multi-signatory transactions from the fund.
Wrapping up the call, Avello said that the Foundation was trying to give the community as much transparency as he could without putting anyone at risk. The Q&A session had to come to a close, but the core community lead David Utrobin said that the session would be continued on Monday.
The MakerDAO Ecosystem Growth Foundation, which is better known as MakerDAO Foundation, launched a stablecoin from their non-profit organization in December 2017 called DAI. They also launched a programmatic loan system, which is what supports the stable value of the DAI token.
The stakeholders will soon have to decision on the increase of the “stability fee” of the token, which could end by Thursday. The proposed changes include a 4% increase, to which head of community development Richard Brown said is “literally the most important thing” for maintaining the peg’s stability.
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