Maker Foundation sent $480 million to MakerDAO before dissolving because the foundation believes the work is nearly done with MKR surging to a record price as we can see more in our latest altcoin news.
The Maker Foundation has been in charge of decentralizing the Maker protocol and it is handing over the funds to the community. The Foundation the organization charged with decentralizing the protocol sent 84,000 MKR tokens with about $480 million to MakerDAO. The protocol’s users will decide what to do with the influx now. The Maker Foundation sent the funds to MakerDAO as it is preparing to self-destruct by the end of this year which is a sign that it sees the project governed by anyone that holds MKR tokens and uses them as self-sustaining. The price of MKR surged immediately 15% in the past day and it is now worth over the $5700 as per Nomics.
The Maker Foundation Returns Dev Fund Holdings to the DAOhttps://t.co/2DN49TtApC
— Maker (@MakerDAO) May 3, 2021
MakerDAO is a decentralized autonomous organization as an online group that has a flat structure that uses tokens as a way of voting on decisions. Maker was built atop the Ethereum blockchain as a way of letting people lend and borrow cryptocurrency with one another. Maker is the most popular Defi product on the ETH network that helps give rise to a whole slew of apps that will allow people to cut out the middle whether that be for lending and borrowing or trading derivatives. With Defi, most things are automated via smart contracts which is a computer code that takes out intermediaries.
The Maker Foundation’s existence is the sole evidence that not everything can be left to unfeeling the unknown computer code and the role of the foundation to launch the DAO and to make it self-sufficient and then exit-stage left. In the blog post it wrote:
“With its final technical contribution to the Protocol complete (Liquidations 2.0), and the DAO’s Core Unit Framework in place, the Foundation now turns inward to focus solely on its dissolution. To that end, it has retained less than one percent of the total current MKR supply to manage the transition and as a bulwark against future potential liabilities.”
The MKR users might decide to do whatever they want with these tokens which are sitting in a smart contract under the Governance Module where all of the protocol’s voting happens and where voted on and later implemented. One bullish way of handling it would be to burn and restrict the supply of the token and to drive the price higher.
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