MakerDAO, the largest decentralized lending protocol, has approved a proposal to establish a "Constitution" that will form the foundation of its major restructuring plan called "Endgame."
The move is part of an effort to address issues related to governance and decision-making within the platform. The new Constitution aims to provide clarity on how decisions are made, who makes them and what happens in case of disputes.
According to Rune Christensen, CEO of MakerDAO, “The approval of the MakerDAO Constitution marks an important milestone for our community as we continue towards creating a more resilient and decentralized financial system. This document provides clear guidance on how we will govern ourselves going forward.”
With this approval, MakerDAO is moving forward with its Endgame plan which includes several key changes such as adding new collateral types beyond Ethereum-based assets and introducing a more flexible interest rate structure.
In addition to these changes, Endgame aims to decentralize control over the platform by transferring ownership from centralized entities like Foundation and Governance Risk Framework (GRF) to independent actors through community-led initiatives.
"This is not just about governance," said Christensen. "It's about creating a sound foundation for DeFi (decentralized finance) going forward."
This move comes at a time when decentralized finance is gaining momentum with more users adopting blockchain-based financial applications. The adoption rate has been fueled by attractive interest rates offered by platforms like MakerDAO which allow users to earn passive income on their crypto holdings.
As per the latest data from DeFi Pulse, MakerDAO ranks 3rd among all DeFi protocols in terms of total value locked ($8 billion). With this restructuring plan underway, it remains to be seen how it will impact users' confidence in the platform and if it can maintain its leadership position among other DeFi protocols.