Final Thoughts

The complex architecture and economic model of MakerDAO were heavily criticized in the past. Regarding Maker’s token, its value is entirely dependant on the MakerDAO system but the stability of the lending system stablecoin was doubted by experts more than once. Maker holders even considered an emergency shutdown in the face of the $4 million debt as it arose as a result of the technical error which coincided with a period of ETH network congestion and a sudden crash of the market price. The community had to hold the emergency vote on changes to the protocol in order to stay afloat.

However, the Maker Protocol allows users to generate DAI which is a stable store of value that lives on the blockchain. Dai is a decentralized stablecoin that is not issued by any centralized actor or trusted counterparty but it is unbiased and borderless and available to anyone. All of Dai is backed by a surplus of collateral that was escrowed into audited Ethereum smart contracts so anyone with an internet connection can monitor the health of the system.

With hundreds of partnerships and strong developer communities, MakerDAo is the engine of the decentralized finance movement. It is unlocking the power of blockchain to deliver on the promise of economic empowerment. Governance will decide on other stuff from day-to-day management to bigger upgrades or system changes. The long-term vision is set up and matures so the governance is at a place where it can allow the Foundation to dissolve and MakerDAO will be able to run itself. This should drive the demand for the tokens as well. The Maker improvement proposals are discussed on a forum and among the most discussed ones are for the onboarding of Chi gas token and YFI as collateral, improved value liquidation process, and asset introduction. Most of them are aimed at ensuring sustainability in the long run.