{"id":31035,"date":"2022-06-27T16:08:59","date_gmt":"2022-06-27T20:08:59","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=31035"},"modified":"2022-06-27T16:09:08","modified_gmt":"2022-06-27T20:09:08","slug":"love-001-looks-uncertain-after-makerdao-rejection","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/love-001-looks-uncertain-after-makerdao-rejection\/","title":{"rendered":"LOVE-001 Looks Uncertain After MakerDAO Rejection"},"content":{"rendered":"\n

MakerDAO<\/a> finally rejected a proposal to create LOVE-001 with 60.17% votes against and 38.28% of votes in favor<\/p>\n\n\n\n

\"LOVE-001
LOVE-001 Looks Uncertain After MakerDAO Rejection<\/figcaption><\/figure>\n\n\n\n

MakerDAO votes against creation of LOVE-001 <\/h2>\n\n\n\n

MakerDAO<\/a> decided today against establishing an oversight group whose job it would have been to inform MKR owners about the nuances of upcoming proposals.<\/p>\n\n\n\n

A proposal to substantially alter the governing structure of MakerDAO was rejected.<\/p>\n\n\n\n

According to Luca Prosperi's suggestion in the MakerDAO Governance Forum, the protocol should have established a Lending Oversight Core Unit (LOVE-001), which would have served as a form of the advisory board for the DAO on complex issues.<\/p>\n\n\n\n

The proposal received 60.17 percent of votes against and 38.28 percent of votes in favor during the voting period, which lasted from June 13 to June 27. <\/p>\n\n\n\n

Voting with 293,911 MKR tokens, or over 30% of the entire circulating supply, set a new record for DeFi<\/a> governance (most proposals aim to attract 5 percent of the supply). The ruling had no effect on the price of MKR.<\/p>\n\n\n\n

Education for MKR holders<\/h2>\n\n\n\n

According to the proposal, LOVE-001 should offer MKR holders a professional resource so they can educate themselves before casting their votes on upcoming proposals. Since these cases “reside both inside and outside the universe of smart contracts,” the unit “[facilitated] the sustainable onboarding of\u2026 billions of more complicated use cases.”<\/p>\n\n\n\n

The protocol had to “decide whether its objective [was] to manage a decentralized [and] de-risked loan facility or an investment vehicle to maximize profit,” MakerDAO head of protocol engineering Derek Flossman said in a tweet. <\/p>\n\n\n\n

\n

MakerDAO needs to decide whether its purpose is to run a decentralised & de-risked credit facility or an investment vehicle to maximise profit\u2026<\/p>— Derek (@DerekFlossman) June 25, 2022\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a><\/blockquote>

He had also mentioned the dangers of regulatory and personal capture that come with the establishment of such a unit.<\/p>\n\n\n\n

Decentralized finance technology<\/h2>\n\n\n\n

MakerDAO is a decentralized finance (DeFi) technology built on Ethereum that enables users to create and borrow DAI<\/a>, a stablecoin with excessive collateral. According to Prosperi, MakerDAO is at the center of a DeFi ecosystem that is becoming more complex, and MKR holders may soon “not have the needed bandwidth nor experience” to fully comprehend the implications of upcoming proposals.<\/p>\n\n\n\n

MakerDAO is not the first DeFi system to have lately considered experimenting with governance structure, even though the concept was ultimately rejected. An innovative dual-governance approach that would align incentives for both LDO and stETH<\/a> holders is being discussed by the Lido community as a potential addition to its protocol.<\/p>\n","protected":false},"excerpt":{"rendered":"

MakerDAO finally rejected a proposal to create LOVE-001 with 60.17% votes against and 38.28% of votes in favor MakerDAO votes against creation of LOVE-001 MakerDAO decided today against establishing an oversight group whose job it would have been to inform MKR owners about the nuances of upcoming proposals. A proposal to substantially alter the governing […]<\/p>\n","protected":false},"author":29,"featured_media":31039,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[6030,5643,1661],"class_list":["post-31035","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-dao-2","tag-defi-2","tag-makerdao"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/image-219.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/31035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=31035"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/31035\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/31039"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=31035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=31035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=31035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}