Tell-All Details Emerge About In-Fighting at Ethereum-Based Startup MakerDAO
A recent letter that came into the possession of CoinDesk has revealed startling news behind in-fighting at MakerDAO. The letter was dated April 1st and it was written by a lawyer stating that five board members of the Cayman Islands-based group were forced to resign y the CEO Rune Christensen.
More details have come to the fore however, in a 25-page document that goes by the title of “Zandy's Story”. It is a document that outlines the entire history of MakerDAO from the perspective of one of the strongest supporters of the coin in the community.
MakerDAO is a project that is based on the Ethereum network and is best known for creating a stablecoin called DAI. The document details the conflict that was at the center of the so-called Purple Pill controversy.
Zandy is the online moniker of Andy Milenius. He was the Chief Technology Officer of MakerDAO until very recently. He confirmed that the document was authentic, even though CoinDesk received the document form a third party. The document, which runs to about ten thousand words, is the personal journey of Zandy in the cryptocurrency world. He first fell in love with Ethereum in 2015 when he realized the limitless potential of the new (at the time) network.
He found his way to MakerDAO and its founder and CEO Rune Christensen pretty quickly. During the text, he espouses the need for why a stable cryptocurrency was needed for any type of smart-contract platform.
The early group of people that were leading the company in two paths that never saw eye-to-eye and how a number of early supporters from the community and some Maker staff tried to find a middle path that was called the Purple Pill. This was due to the blue pill/red pill option offered by the CEO to everyone at the beginning of this year.
The red pill was people who wanted to follow his path. The blue pill was for people who want to go in another direction. He allowed those people to finish the work on the MCD (Multi-Collateral Dai) until it was finished but would then cut off their funding. These people wanted a less formal organizational structure which was diametrically opposed to Rune Christensen's view that MakerDAO needed to integrate itself with the global financial system and focus on government compliance.
He says that a Signal group was formed by people who wanted another way that would try to bring together the two disapparate groups. Someone in the group called it a Purple Pill due to the combination of Red and Blue Pill philosophies. The problem was when Rune Christensen found out, he took it for treason and conspiracy. He called a board meeting and fired the board members that were a part of the group. He said that it gave him no joy to do it, but that it simply had to be done.
Corporate Or Creative: Discord Created By Clashing Visions
MakerDAO's story is one where the company hemorrhages its sub-units instead of using them to become greater as a whole. DappHub was created as a spin-off from MakerDAO because Christensen and Mushegian simply didn't get along with each other. The tension created during that episode was what lead to the current problem, which Zandy has described as the most difficult time he spent in his 3 and a half years at the project.
Christensen wanted a far more corporate structure to come into place while Mushegian wanted to create something new and unique. Christensen's view was that if Mushegian created his own company, it would keep the relationship between them professional. Christensen simply wasn't able to understand certain misfit type characters and weird geniuses in the same way Mushegian did – and DappHub welcomed them all.
The rift was not fully healed, as Christensen decided to take a greater role in the project he helped create. He realized that he would need to take a more active role in the organization if it was going to ever be successful.
This has lead to the current situation, where there is no single unity of vision from the beginning. The good news for fans of Maker is that the controversy has been settled one way or another earlier this month. How things will continue form now is debatable but the premise of the project is still worthy. This is a cautionary tale regarding the pitfalls of trying something new. There are guidelines for how a startup should work and what an executive is because of history showing the way in the traditional sector. Many int he crypto industry hope that the lessons learned at Maker will help future startups put everything on an even keel earlier int he relationship.