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Hasu's Proposal | Community Call on Building a Resilient, Decentralized and Uncensorable Stablecoin


About: Recognized Delegate Hasu made a post outlining a series of governance changes to address many of the issues MakerDAO is currently facing. While he believes Rune’s Endgame Plan contains some good ideas, he wanted to provide a simpler alternative for the sake of competition.

Hasu believes that Maker struggles with a lack of long-term vision and strategy and needs to find solutions for two primary issues going forward:

1. Maker’s identity crisis

Multiple questions have been debated by the community for years—and are still being debated:

– How much emphasis should we put on MKR holder profit vs. operating as a public good?
– What is the right balance between decentralization and efficiency?
– Should Maker stay isolated to crypto or expand to the real world?
– Should we continuously burn MKR vs. burning MKR tactically?
– Is Maker a bank?
– What is the right shape for MakerDAO (the organization)?

Hasu believes we must develop a unified vision for where Maker should be headed.

2. Maker’s governance crisis

Hasu argues that MKR holders and Delegates are overburdened and are expected to vote on every proposal without adequate knowledge (due to the growing size and complexity of the Maker organization) or incentivization to do so.

The proposal for solving these problems involves two main components.

1. Creating a Constitution

This Constitution would nail down a long-term vision for MakerDAO by defining:

– Maker’s vision and North Star
– The rights and responsibilities of key stakeholders within the system
– Maker’s mandates (e.g., make money for MKR holders, create the most liquid decentralized stablecoin, and become the cheapest source of credit)

Benefits include:

– Creating a rock-solid foundation of the underlying principles of Maker; the constitution defines those parts that are explicitly not subject to frequent change and from which other decisions (e.g., strategy or tactics decisions) derive
– Encoding in writing what we can’t encode in smart contract code
– Creating a yardstick against which all other parts of the decision supply chain (delegates, council, MAs, CU members) can be held accountable
– Cleanly separate the what (vision, goals) from the how (strategy) so they can be discussed and decided on individually

2. Establishing a Council of Makers

The main goal of this component is to provide the strategy level of the governance decision-making chain with its dedicated role. The Council could be tasked with:

– Setting a high-level strategy to reach the goals laid out in the Constitution
– Setting and allocating a budget
– Managing bigger DAO transactions like buybacks, dividends, DAO-to-DAO partnerships, and token/debt offerings
– Specialization would be encouraged to avoid complications arising from the local knowledge problem.

Some implementation details and an impact outlook are available in the full post.

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