- Maker Foundation to shut down in the next few months
- MakerDAO has taken over control of the Ethereum-based Maker protocol.
Apparently, Maker Foundation has announced that it will be shutting down in the next few months. Specifically, the Maker Foundation is turning over operations entirely to its decentralized autonomous organization (DAO), MakerDAO.
Therefore, MakerDAO has moved to full decentralization. More so, MakerDAO is taking over control of the Ethereum-based Maker protocol and its associated cryptocurrencies, MKR and DAI.
— Maker (@MakerDAO) July 20, 2021
MakerDAO founder Rune Christensen said that:
From the earliest days of Maker, everyone involved worked tirelessly to devise a framework for scientific governance and create an infrastructure for a new generation of open financial services that can be used by anyone, anywhere, anytime.
We all hoped for success but knew it would never be guaranteed. We realized that only a very independent, passionate, and committed Maker community could make success a reality, in the end, said, Christensen.
Currently, DAI has grown into the fourth-largest stablecoin by market capitalization. Meanwhile, the Maker protocol has over $5 billion worth of tokens locked into it as collateral
The Maker Foundation has been guiding the development of the Maker protocol as MakerDAO grew and matured. Actually, in May, Maker Foundation sent MakerDAO 84,000 MKR tokens, then worth $480 million (now closer to $185 million), from its Development Fund as it began winding down.
In detail, MakerDAO’s decentralized finance platform lets borrowers use volatile cryptocurrency as collateral for loans of stablecoins (called dai) pegged to the U.S. dollar. Furthermore, this is all done without intermediaries such as banks. Likewise, MakerDAO made history in 2017 as the first blockchain-based protocol to launch a major automated cryptocurrency-lending platform.