Foundation Proposal v2

Aug 21, 2018 · 5 min read
Image for post
Image for post

The Maker Foundation Team firmly believes that a careful and gradual approach is the safest path towards a long-term equilibrium of decentralized governance. The first step on this journey is to hold the first-ever public MKR vote on September 12th.

This first MKR vote may be one of our most significant, as we will use the opportunity to bootstrap community governance by aligning all stakeholders behind five core principles. Principles that will guide Maker on the path to long-term success and effective decentralized governance.

All Maker community members should read the five core principles of the Maker Governance philosophy carefully. As you reflect on whether these principles are in alignment with your own ideas about how Maker can maximize its potential impact on the world, please remember to provide feedback by joining the debate on the /r/MakerDAO subreddit. The Maker Foundation Team will continue to iterate on the Foundation Proposal based on your feedback and ultimately hold a vote to accept the Proposal as the first collection of core documents of the Maker Governance Philosophy.

Scientific Governance

The Framework itself can be broken down into two major components:

  • Governance Proposals: Symbolic votes used to poll community sentiment towards specific models or data sources.
  • Executive Proposals: Used to ratify the Risk Parameters determined by the models and data accepted by Governance Proposals. Executive votes result in state changes inside the Dai Credit System and occur every quarter.

This distinction encourages the governance debate to become a consensus-seeking exercise to reach an optimal compromise, where communication channels force participants to focus on the underlying reasoning, theories, and data provided by the risk assessments, rather than polarizing contests about specific risk parameters for particular tokens.

In this model, neither the MKR holders nor the Maker Foundation will have any special powers to arbitrarily dictate the risk parameters of the system, they can only affect changes through evidence-based, provable, deliberative arguments.

The Maker Foundation Risk Team has been publishing a series of foundational papers (part 1, part 2) about the Maker Governance Framework that provides a full overview of the different elements required to launch a functional governance process. The models outlined in the foundational papers will determine the risk parameters of Multi-Collateral Dai at launch, as well as the processes to modify them over time.

Serving The Underserved

We will achieve this through an application of the “triple bottom line”, a financial concept that defines a businesses success by not only focusing on net income, but also the way it achieves profitability through the betterment of humanity in general. The three ‘bottom lines’ are generally defined as “profit, people, planet.” By aligning with these ideals we can prioritize the growth and adoption of Dai in emerging economies, while also seeing our network have a profound positive social impact on the world in a sustainable manner.

We believe the unbanked will immediately benefit from this economic inclusion and see a resulting increase in quality of life by giving them access to the global financial ecosystem through the use of Dai as a predictable and stable unit of account. This new and untapped market comes with a very low cost-to-acquisition that will accelerate Dai’s entrenchment in the global marketplace.

Sustainable Finance

Gradual Decentralization

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

This includes doing various low-level tasks in the ecosystem, such as managing the initial set of Oracle nodes and the first Emergency Shutdown (formerly called Global Settlement) infrastructure.

Before the new voting governance dashboard is released, the Maker Foundation will coordinate voting among highly technical MKR holders via command line tools, to avoid any disruption to Single-Collateral Dai.

Mechanics of the Vote

Be on the lookout for the additional documents expanding on the Scientific Governance principle and Serving the Underserved that will be available in advance of the September 12 vote.

The vote will use the new governance dashboard that is currently under development, and will showcase the upgraded user experience that will be used to control Multi-Collateral Dai governance. Both Yes and No options will be available for people to vote on, and there will be detailed instructions on how to vote with your MKR. The Foundation Proposal will be considered passed if there is a simple majority (>50%) for Yes, with no quorum.

The goal is to achieve a landslide success, showcasing the unity and enthusiasm of the Maker community in taking on the challenge of decentralized governance. The Maker Foundation will seek a dialogue with any No voters to better understand their concerns. We strongly encourage everyone to share feedback and provide any input they have that will make the Foundation Proposal the ideal governance philosophy.

Join the Community Call

Join Hangouts Meet:

Join by phone: +1 347–450–6962 PIN: 705 150 162 4714#

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch

Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore

Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store