MakerDAO
This research is centered on MakerDAO. We want to know more about the DAO operation and what DAO tools they use in running a smooth community.
MakerDAO is known to be a peer-to-peer decentralized protocol lying on Ethereum blockchain. It facilitates borrowing, lending, and savings. The protocol enables its users to borrow funds denominated in DAI. To do this, a user needs Ethereum and a MetaMask wallet. Furthermore, MakerDAO enables the generation of Dai, the world's first unbiased currency, and leading decentralized stablecoin in the planet.
A community of MKR token holders govern the Maker Protocol. With the MKR token, holders can vote on changes to the Maker Protocol. Just so you know, anyone can submit proposals for an MKR vote, not only MKR holders.
DAO Tools Used By MakerDAO
MakerDAO uses their own tool for governance operation, it includes the MakerDAO’s Forum and the MakerDAO’s Governance Portal.
MakerDAO Governance Process
1. Forum
Forum Is the Heart of the Maker Community. MakerDAO’s Forum is the place for community members to discuss important topics that can lead to significant changes to the Maker Protocol. These may include critical discussions around governance and risk, community development, and Maker Improvement Proposals (MIPs) which enable community members to propose updates, and additions to the Protocol and DAO.
After a successful discussion on the forum, the MakerDAO community uses the governance portal to voice their opinion. Voting is conducted on MakerDAO’s own Governance Portal; The portal allows anyone to view governance proposals, and it also enables MKR token holders to vote on proposals easily.
The Maker Governance process includes proposal polling and Executive Voting.
Proposal Polling
This is the first step taken to ensure proposer governance. The Proposal polling is conducted to establish a rough consensus of community sentiment before any Executive Votes are cast. This helps to ensure that governance decisions are considered throughtfully and reached by consensus prior to the voting process itself.
Executive Voting
Next, is Executive Voting. Executive Voting is conducted by the community members to approve (or not) changes to the state of the Maker protocol. For example, there could be a vote to ratify Risk Parameters for a newly accepted collateral type.
What Does MakerDAO Use To Conduct This Votes?
MakerDAO uses smart contracts to manage each type of vote. A Proposal Contract is a smart contract with one or more valid governance actions programmed into it. They’re programmed to be executed only once. After execution, it cannot be reused anymore.
Any Ethereum Address can deploy valid Proposal Contracts. MKR token holders can then cast approval votes for the proposal that they want to elect as the Active Proposal. The Ethereum address that has the highest number of approval votes is elected as the Active Proposal.
Other Tools Used By MakerDAO
What is ChainLink?
Chainlink is a decentralized network of nodes that provide data and information from off-blockchain sources to on-blockchain smart contracts via oracles.
Resources
What is SparkProtocol?
MakerDAO, the issuer of DAI, the leading decentralized stablecoin, has launched Spark Protocol, a new lending platform that aims to bolster DAI's capabilities. Spark Lend is the protocol's debut offering and allows users to borrow or supply Ether, stETH, DAI, and savings DAI at competitive rates.
Resources
MakerDAO Onboarding process
Onboarding is pretty much easy. Follow the MakerDAO Discord link Read the channel rules, react to an emoji and verify your account.
The only way to get the MakerDAO utility token (MKR) is by purchasing the token on MakerDAO's own platform or through an exchange like Binance.
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