MakerDAO Community Splits Over 'Endgame' Proposal

MakerDAO Community Divides Over 'Endgame' Proposal

The MakerDAO community has split into two factions following the unveiling of the "Endgame" proposal, a plan to restructure and further decentralize the protocol. This proposal, introduced by MakerDAO co-founder Rune Christensen, has sparked significant debate within the decentralized finance (DeFi) community.

The Two Factions: MetaDAOists and Constitutionalists

The proposal has created two opposing groups within the DAO: the MetaDAOists and the Constitutionalists. The MetaDAOists support the Endgame plan, which aims to create MetaDAOs and implement a new vault to enhance the protocol's resilience against potential sanctions, such as those seen with Tornado Cash. On the other hand, the Constitutionalists oppose the plan, expressing concerns over centralization and the concentration of power.

Community Reaction and Voting

Despite the opposition, the MakerDAO community has shown support for the initiative. A majority voted in favor of submitting eight Maker Improvement Proposals (MIPs) designed to increase revenue and improve the protocol's infrastructure. However, it's important to note that Monday's vote was a ratification vote, and each MIP will require further votes before being executed on-chain.

Implications for DeFi and MakerDAO's Future

The Endgame proposal represents one of the most significant restructurings in MakerDAO's history. Proponents argue that it will enhance the protocol's decentralization and resilience, ensuring its survival in a rapidly evolving regulatory landscape. Critics, however, fear that the changes could lead to centralization and undue influence by key figures like Christensen.

The split within the MakerDAO community highlights the challenges of governance in decentralized systems. As the proposals move forward, the outcome will be closely watched by the broader DeFi community, as it could set a precedent for other protocols navigating similar challenges.