The Maker Foundation has announced it has successfully transferred control of MKR tokens to the community of Maker governance. The MKR token contract is now in full control of MKR holders, bringing it closer to complete decentralization of the system, the foundation says.
The Maker Foundation, a non-profit organization responsible for running the Maker blockchain, has announced that the transfer of MKR token control to the Maker governance community has been completed.
Maker Completes MKR Token Control Transfer
The MKR token contract is now 100 percent in control of MKR holders, bringing the MakerDAO ecosystem one step closer to fully decentralized governance, the foundation added.
“Today’s news is momentous. By completing its commitment to transfer the MKR token contract to MKR holders, the Maker Foundation continues to move toward a completely self-sustaining MakerDAO,” said Rune Christensen, CEO of the Maker Foundation.
The process took just over three months to complete, as the first step was launched on January 10, when the contract “MkrAuthority” was deployed on the Ethereum mainnet. The final step of the transfer of governance was completed on March 24, when the MKR token’s owner was set to the address 0x0.
The transfer of control of the Maker protocol into the hands of MKR holders was the culmination of an effort to decentralize MakerDAO altogether. This move is particularly important because MKR’s price dropped nearly 60 per cent on Mar. 13, causing havoc on the DeFi protocol.
Borrowers on Maker were caught on the wrong side of an unstable market with open CDPs and Vaults as millions of dollars worth of collateral were auctioned off for $0. Many borrowers who tried to add more collateral to their loans but were unable to do so because they faced unprecedented congestion on the network.
The Maker Foundation took active steps, including a $4.5 million MKR auction, to reduce the adverse effects of the major downturn Maker saw on Mar. 13. The foundation said the latest transfer of control, in conjunction with the auction, would serve to recapitalize the Maker system and embody the true values of decentralized finance.