Dao Drama has again hit Sky (formerly Maker) Governance, in what is characterized as a risky grip of power or a “potential administrative attack”, depending on who you ask.
The debate then started the Paper empire of GFX Labs a member of the maker for many years and regularly used critic of the recent direction of the project-to X to express concern about a rapidly followed management proposal that relaxes limitations of loans against the MKR board.
The changes that according to the thread, “circumventing, the right process” would have on the effect of “> 2x the credit line for MKR holders and the LTV increase from 50% to 80%”.
Paper empire also claimed that, like GFX labs, they had been Forbidden of the Governance Forum During the proposal.
Read more: Aave proposal to ping Ethena’s used to USDT, evokes concern
Risk management and worries about censorship aside, the thread is also ensuring that planting the standard governance process would “delegate” the reassuring reputation of the maker for “boring, process-driven administration with his own legal code.”
The post grabbed a lot of interest in decentralized financing circles (Defi), in which the proposed losing of loan restrictions probably reminds much of the risky actions of Curve Finance founder Michael Egorov.
After borrowing millions of dollars to Stablecoins against very leverage CRV -superior, Egorov’s positions blew up spectacularly in June last year when he was liquidated over several Defi -credit protocols.
However, the context in which the approved emergency situation “Out-of-Schedule Executive proposal for community security” was made was conveniently omitted from the original thread.
Recognizing that the proposal can ‘generate discussion’, the changes claim to offer ‘greater flexibility and responsiveness for emerging threats while maintaining the supervision of the community’.
Worries within the maker about ‘malicious board actions’ seem to be based on’ screenshots and whistleblower reports’, although the evidence seems to indicate ‘very little probability’ of success, according to the proposal that is made ‘from an abundance of caution. “
The majority of answers to the proposal asked for further explanation, but the mood was hired before additional details were provided.
The screenshots in question can be found in this message from the CEO of Phoenix Labs Sam Macpherson (a spark and ex-maker employee) and describe a plan to collect MKR voting power and a “takeover” of the protocol board to implement.
More screenshots show the founder of maker Rune Christensen who describe a supposed plan to force “liquidations” of MKR positions to retrieve cheap governance tokens that are supported by “a crooked rent soldier capital fund” who have a history of “leeching” of Defi protocols.
The “0xngmi” of Defillama neatly summarized the reasoning behind the changes from an external perspective and said: “So the idea is that Rune has a couple of MKR/Sky on Aave and Morpho for his loans, but he Can’t vote with those tokens.
They added: “He wants to move those loans to maker so that he can vote with them and therefore make it more difficult for others to surpass him in a management attack on him.”
Read more: Founder of Curve Finance Michael Egorov struck in the midst of $ 22 million CRV Liquidation Cascade
Governance Attack or activist Investing?
This is far from the first time that a Defi protocol has been entangled in a debate on the accumulation of voting authority in management systems on chains.
In 2023, projects such as Rook and Aragon were called the target of a group of the RFV rides, which daos identified with treasury holdings that were higher than the price of a controlling interest of administrative vessels.
Read more: Compiled Dao Sleep behind the wheel as $ 25 million Governance ‘Attack’ Passes
Last year, Compound DAO indicated a proposal to move half a million compt tokens (worth $ 25 million at that time) to a new safe set up by a group known as the Golden Boys who had collected enough tokens to continue vote the changes.
The de-facto leader of the group, Humpy, who had previously drawn a similar schedule on the decentralized exchange balancer,, however, rejected the accusation of “stem“Funds.
The “Trust Setup” Multisig, he claimed, would only allow the withdrawal of the funds if it is voted by the DAO, before he stated with: “I would like to thank all holders who voted for our proposal.”
