The Maker Foundation has contributed back a part of its Development Fund into the MakerDAO as it prepares for dissolution
The Maker Foundation has sent back a total of 84,000 MKR tokens to MakerDAO and will now let the protocol move become fully decentralised. The figures are estimated to be worth around $480 million and will probably be left in the hands of their community. The Foundation’s role in the get-go was to create the DAO protocol and also make it self-governing before exiting.
It believes the majority of this work is done and what stays is dissolution. The returned tokens were part of its Development Fund that funded its own work. This fund no longer serves some purpose now since the protocol has achieved many of its first aims. The base, which was in charge of the protocol, is set to dissolve before the end of the year.
It will then usher in a new age of decentralisation for the protocol. MakerDAO is a decentralized credit system which runs on the Ethereum blockchain. It supports the Dai secure coin pegged to USD and uses this token to vote on decisions affecting the protocol. By returning the tokens from its growth fund, the Maker Foundation has handed over the reins of this protocol to its own stage users.
The move truly is a significant one for the protocol that’s on the path to full decentralisation. Maker Governance will now decide what to do with the returned tokens. The Foundation confirmed the development in a blog article published yesterday, demonstrating that there were no set conditions or terms for the return.
The statement detailed that specialized contributions to Maker’s liquidation engine was finalised and the DAO core unit framework was already set. All that’s left at this stage is for the base is to step back and forth “turn inward to focus solely on its dissolution.”
It, however, held on less than 1% of the total MKR distribution that would be used to fund the process of dissolution. Additionally, it promised to keep upgrading the community by posting progress reports until it eventually becomes obsolete. Upon dissolution, the protocol will get truly decentralised and self-sustaining.
“To that end, it has retained less than one percent of the total current MKR supply to manage the transition and as a bulwark against future potential liabilities,” the blog article read.
MakerDAO is among the best performing lending protocols and now sits at first position in TVL positions with approximately $11.9 billion secured. Aave ($10. 72 billion) and Compound ($9. 73 billion) follow in second and third spot, respectively.