From the Foundation to Decentralization

Transcript

um so i'm nadia i'm right now i work directly for maker dao the protocol as a facilitator of a career unit i will i will explain all of these weird and maker dial terms later but i'm now part of the protocol i'm a contributor of the protocol as a facilitator facilitator of a like a business unit or core unit that is called growth in growth we help the maker dial protocol to grow to help die to be in as many places as we can to help people to get to know what maker dao is and open a vault and generate more dye

and have the greatest ecosystem around so i'm going to tell you my story from my point of view about the transition from the foundation to a dao and this is funny because it this is my story so i can tell you what happened before because before we were a foundation part of the foundation it was a dao so the project started originally as a dao and the foundation was created just to bootstrap the protocol which is interesting because since day one the foundation like the idea of the foundation was to have an end it doesn't matter why what what happened in the future the idea was

to uh close the foundation at some point because the protocol has to be a dao so this uh we have like this uh uh fred this thing that we always say maker strategic patience because everything we do takes a long a long time we debate we discuss we plan we analyze a lot because we really care about the security of the protocol in general not just like in in a in a technical aspect but also in in different realms including the league the legal one and i think that's why for us decentralization is so important because if we want to have a stable coin

we also have to be a real dao a complete decentralized organization so this is the story of a careful and gradle approach to find the centralization and become a completely uh protocol oriented to the centralization so um this roadmap started back in september of 2018 when uh was the first maker governance vote and at the moment it was super weird because like i i didn't i wasn't like getting why we are voting for these principles and what does it mean that we have governance tokens and we have to vote

like it was it wasn't clear for me at all because this was the first dow that i were part of and actually i i started with crypto just around 2000 2017 so it was weird all these things about doubts and governance tokens and and voting and all of that and also it was super weird for super weird for me to think about voting for a core principles of the maker protocol a protocol has principles but it's interesting because this is the vision the long-term vision of maker dao and this is like what help us to know what is then what are the next steps so first test scientific governance

and going back there i invite you all like the goal is that after this presentation you will go to forum.makerdao.com and see all the crazy conversations that we have there crazy ones but super interesting and you learn a lot because uh you have to convince other people who was who are like really really smart about why that's the next best thing that the protocol has to do so you learn a lot uh just like reading other posts and participating in the conversation and it's a very good one so it's it isn't scientific because you

have to like you just you have to prove with facts what you are saying and with those facts as an input you are taking decisions you are proposing things and everyone is like asking questions and and really understanding if that's the way to go so that's super cool the second one is serving the underserved usually i i hate that phrase because like well i i i come from latin america and crypto wants to save latin america i hate that um and for me maker is not trying to help emerging markets for me maker is trying to be an option for the people who are looking

to have a better place to live so it is worried about to be a profitable protocol but it also it worry about the people to have present options to the people but it also it's it's worried about the planet and i found that interesting because why into 2018 uh blockchain protocol is like caring about the planet so that's interesting then well it has to be sustainable so the protocol itself is sustainable this is interesting i don't know if you know but maker protocol it's a profitable protocol we are looking for collaterals that uh help the protocol to

maintain it in that way it it was at that time it was important to have a gradual decentralization because we needed the foundation we needed that central team to start thinking how to how to help this dye thing to grow at that time it was single collateral die it was like we had just like we didn't have uh no at that time it was like one million die a liquidity in the market it was nothing so we really needed to find a way to make the pro to help the protocol to growth and then well that driving that adoption and that that was amazing

because i i really feel part of that that point because well while i was at the foundation i was leading all the business development efforts for latin america and i know there are a lot of argentinians here in the audience and i is really well recognized in argentina like actually while i was living in argentina it was possible for me to pay my rent and die and i know a lot of argentinians around the world like saving their money and die and sending die to their families and friends so i think that was important for us then during 2019 and 2020 at the foundation we did a lot of things

to bootstrap that uh to help the community to er to take to to start like working for the protocol but we needed to bootstrap this this growth so that's well that's what during this time that's why when oasis came that's when multi-collateral die also was launched i forgot to mention but during that time there was also the launching of the dice savings rate it was also during that time when black thursday happened and that was the first time that the maker community and the maker foundation worked together to find a solution of that problem that was super cool and

uh at the end er the maker foundation it trans transfer the government the the maker token to governance so that was like uh the final not the final but like one of the main important things to towards decentralization so this period was super important but what what when what what happened next is okay now we are super close to destroy the foundation and give everything to the community but we have to create a framework to help the community to like start doing the things that the foundation was doing and that that's when the foundation created a framework

of how what to do how to manage these days that will come when the foundation is preparing to get dissolved so that's when [Music] in april 2020 there was like um this idea about having um having contributors that are paid by the protocol helping the community to work in working teams to start forming working teams towards some objectives so it was important to for to find a a group that works in in how to handle the risk of the collaterals that want to

be part of the protocol it was important also to start like helping the community to understand how to maintain the smart contracts of the protocol it was also important to help the community in general to start understanding more about makers so they can like be more interested about it and create their own groups their own working groups and it was also the time when we thought okay if we are going to have these processes um leaded by the community we have to find a way so the community can propose it to the governance and we can all vote for that that's why that was when we created these uh maker improvement

proposals all the framework and how the governance cycle will going to work and then we said okay now that we are going to have everything in the hands of the community there are going to be a lot of proposals we need delegates and this is coming so when i was reading this uh like because when i was preparing the presentation i was reading this and i thought oh wow like in april 2020 uh we were preparing what's happening now so these working groups are now a reality by core units now we have different core units that take care of all the things that the

maker protocol needs we have the the mips we have a framework to create proposals we have a governance process that we all understand and we can propose things to modify the protocol or to improve it and now we are working in the in the in the maker delegates because we want to have a highest a more high participation of the maker holders in all these governance decisions so at the beginning of this year using the mips framework it was created the core unit framework so anyone who wants and that's open for anyone if you want to collaborate with maker dao you just have to write a proposal if

you want to want to write a proposal then you don't know how to do it just let me know i will be happy to help you and now i'm an expert creating mips so you can you can create a meep uh post your proposal in the forum you can get voted and you can start working for the dao which i think is is super great that's like a total decentralization uh during this year the foundation also launched liquidations 2.0 which was like a super important part of the protocol and that was like the last thing the foundation wanted to give to the community and as a last step that i know you all heard about was

when the foundation returned the 84 000 maker to er to make your dao just because and uh this is interesting because the foundation didn't ask for anything or didn't told the community okay these maker tokens are for this thing now it's like just the foundation has to disappear we have this in the treasury it belongs to the dao we don't have to have that so that's that's cool so how are things today today is like um i don't know uh it's it's it's it's a lot of work because we

have uh we don't have that much that that many koreans that as we need so we are working a lot we are discovering how is to work together without having a foundation telling us what to do so that is that is that is great because we have a lot of freedom we have we we we can be as creative as we want we we can propose whatever we want and to work according to have this coordinated work between core units we have to be transparent and i think that's the most important part of becoming a dao you have to be transparent and that is also good for

all of you for all the maker dao users because you can you can trust in what you see and i think that's part of of why we are creating things on ethereum so um by now there are nine accepted career units this is like how the forum looks like but you will know because after this presentation you will go to forum.maker.com and see what we are doing my career need is growth part of my team is here and we are all looking to make a maker even better we are proposing a lot of things that

maybe during the foundation we couldn't because it was difficult because of the liability that the foundation represented for the protocol but now we are like super creative i'm proposing a lot of things uh to the dao which is fun because we are like a giving all this feedback that we hear outside from our partners from from the ecosystem from the the the traditional finance companies that want to do something with defy we are bringing all this feedback and talking with the risk korean it with the uh the protocol engineering career unit and with other career needs to work together and improve the protocol is not

as fast as other dows that you're seeing because other taos now probably they have a central uh a central like a foundation that helps all the core units to understand what our next steps in our case we don't have that because that's the part of be completely decentralized we don't have someone telling us where to go we are all deciding through this scientific governance what is the next steps that maker dao has to has to achieve to to growth even more we have an open discussion so this is

great like last week it was the a 100 governance call which is open to anybody to everyone uh today we have our governance code is on thursday so we are in this call discussing everything about maker and we are getting paid directly through governance which i also think is super cool like the dow pays for our salaries and for all the budget we need to run the business so we are using die to pay for salaries to pay for contributors to pay for service providers to to help make our doubt to growth so i

think that's like that's part of the vision we are really using dye to run uh at the maker dao business and uh everything is made through a governance process in a in a transparent way so that's it this is the forum website from.maker.com and this the the other one is where you can vote if you have maker tokens you can see all the open proposals and vote for the ones you like and the ones you don't so i invite you to participate in the community to help us to improve and to help us to make make her

even more bigger than it is now thank you hi my name is danielle i work at shape shift and we're working on moving from the centralized model to the decentralized model and i think one of the biggest questions for our employees that i hope you can elaborate on is the paid per project and per proposal versus like the paid per salary part and how did you overcome that at the beginning like is it more project based or do you have

work stream leaders where it's salary based and and they work constantly and can you go into that a little bit more thank you yeah well um the for creating code units is super flexible and actually you can also propose another type of a contributor if you think that me it doesn't fit for what you're looking for but as for now we have the two models like we the core units are more oriented to be like uh business providers for the maker daw so if you are if you are a group of developers you are going to contribute to the dow know by project but

contribute to the dow because there are always a lot of things to do same for risk thing for growth but we also have la accordionid ses and they provide grants to people who wants to contribute to the dial but based by project so they are the ones who are helping the dow to organize that process but of course if you don't want to go through scs and this is the beauty of the centralization you can propose yourself as okay i want i i know how to do this i think maker dao needs to improve in this i want to do it you present a proposal tell us what your budget is tell us what your credentials are and

you have to convince the maker holders and the community and that's it so this is super open and flexible i don't think i mean i this is a good question i don't think dao's are effective taos are a mess those are for like create things and uh i don't know it's not effective sorry hi i'm makoto from ens and question is more kind of real world legal implication that for anything touch is legal one

like which unit is in charge why is it per individual so for prime example is that for example makadao.com someone has to punch in credit card number does it belongs to some random contributors who make a mip or does it actually belong to the core unit which and also oit even company how how does a work of the kind of legal mapping okay well same same same answer i think we don't have an answer for that we are discovering how to handle all legal things we know that if we are a decentralized entity it it will be easy to reduce liabilities for the protocol

because that's our main objective the protocol but you are increasing liabilities for core units and individual contributors so each core unit for now has to find a way to reduce that those liabilities and and each career unit is doing what they think is best and we like that approach because that's we don't want to impose a career in it what to do we want them to come with a proposal and just try it out uh but also ses ses is an interesting career unit because they are helping to bootstrap all these other coordinates that are are going to be a helping maker though so they can give you like a set of

guidelines but at the end you you have the freedom to do what whatever you think is best for you we all recommend career units that you have to you should have uh you should be incorporated somewhere you should have uh like legal advisors but we don't we don't tell koreans what to do yeah so currently it is for again megadot.com belongs to a make a file foundation as of now for now yes but it's in the process of being delegated maybe to a career need maybe to we don't know uh that that will be up to

maker governance and that you guys may make new company like core unit could become its only identity but you don't know yet yes yes what says yes it's another it's one of the koreans that one of the korean as well that was voted and accepted by by maker governance and i'm not the best person to to tell you what it is about because i think it deserves it its own presentation so you can just reach out to lenka and she will tell you all about um who is the key holders to the um endowment you now have at maker

dao and who are the people that are actually paying the contributors and what's to stop them from making payment to someone else oh they can pay to someone else like if you if you are voted you will receive the budget from the protocol i mean what if what if someone who who's the person that's actually doing the transactions to pay the people oh no no it is sold by a smart contractor like you go yes yes it goes to an executive vote maker holders vote if you are voted then the smart contract will send a die to an address okay

hey um i've been a fan of maker dale for a long time um this sounds like this requires even more voting than we used to have to vote for so i haven't been in the loop for a while is there any plans to make like uh so we don't have to spend so much gas voting well we think delegators will help us with that but also we are open for ideas like i think i we all think we all suppose that delegators will solve it we don't know we will know when we start start with that model but we are also like open to hear ideas uh proposals and yes we we don't know

if that will work we hope so that makes sense i guess thank you cool thank you you