Maker Governance - progress on the five core principles?

When is the Maker Foundation planning to issue some kind of report or feedback with regards to the situation regarding the five core principles of the Maker Governance philosophy?


what initiatives are underway?

what is the distribution between external and internal projects?

what portion of funding has been allocated to each initiative?

The Maker Foundation is currently focused on dissolving and I would be surprised if they published the kind of report you’re asking about.

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For those of you confused by this post, the first MKR vote contained a Proposal from the Foundation that outlined five core principles of Maker governance.

Scientific Governance

The Maker Governance Framework will be built on rigorously vetted, reproducible, scientific models created by experts with proven track records in the traditional finance space.

Serving The Underserved

Serving the underserved refers to our focus on Dai adoption in emerging markets by recognizing the tremendous opportunities for growth that results from reducing inefficiencies in the global economy.

Sustainable Finance

The makeup of the Dai collateral portfolio can have a significant impact on global capital allocation. It is therefore crucial that governance of the collateral portfolio take long-term societal, environmental, and sustainability impact into account. The Maker project as a whole must keep the principles of sustainable finance as a core value, and always include negative externalities as a key factor in risk assessments of collateral. This means that Maker will be biased towards, for example, renewable energy that provides a long-term global benefit, while being biased against funding fossil fuels and other assets that create long-term risk.

Gradual Decentralization

The Maker Foundation is committed to true decentralization, but the road to decentralization needs to be a steady path taken step-by-step. This will ensure that the Foundation will have the support it needs to be successful, and protect against threats to the long-term goal of decentralization, such as a power vacuum. It is also crucial to provide maximal stability for partner companies that are integrating with Maker as they need to feel safe there won’t be sudden changes due to rapid decentralization of governance.

The Foundation will drive Maker towards increased decentralization, with every step opening up more aspects of governance to community control, while eliminating single points of failure. At the same time, the Foundation will also take responsibility for teaching and providing guidance on how community members can most constructively contribute to governance.

Driving Dai Adoption

To drive growth and promote the adoption of Dai, the Maker Foundation needs high levels of flexibility and more control in the short term. The Foundation will facilitate exponential user growth, business adoption, and dapp integrations to maintain the dominance of Dai across all markets for decentralized stablecoins.

This vote passed back in Sept 2018, in the SCD voting system, before the launch of Multi-Collateral Dai.

In theory, these should still pretty much apply. I would love to see a community revision of reaffirmation of some principles.

As for the progress with these:

Scientific Governance - I think the community has been doing really well in this regard; funding a Risk Core Unit as well as forming the first Parameter Proposal Group, with more to come.
Serving The Underserved - Maybe once L2s get up and running we can re-focus on this one. Gas costs ruined the narrative & ability to fulfil it here.
Sustainable Finance - We are looking for any and all quality collateral. I think once we have a lot more choice, teams can focus more on this principle.
Gradual Decentralization - HUGE progress here (see this, this, this, and this)
Driving Dai Adoption - Also a fantastic amount of progress. The foundation BD team had to slow down toward the end, but thankfully the Growth Core Unit launched (with some former members of the foundation), and they are full speed ahead.


Excellent post David. I do also believe “Serving the underserved” has been hit hard as the minimum amount to mint Dai has increased dramatically. Hopefully, will be solved soon :+1:


Without a vision, the DAO will perish.

If they are still valid, lets put them into action. If not, lets replace them. Statements without action are fantasy.

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