Sky (formerly Makerdao) Governance is struggling with the implications of a proposal carried out today that today changes the role of MKR to the ecosystem. Pitched as a necessary step to protect the protocol protection, the rapid approval of these changes has debates about transparency, process integrity and the risk -rarely implications for DAI/USDS inflamed instead.
The proposal eliminates the long -term exit compensation of 5% on MKR recordings, extensively expands the loans against MKR -computer and increases the loan interest -while at the same time reduces the thresholds of liquidation. Critics claim that these measures increase the exposure risk of the protocol, in particular given that MKR now has one of the highest loan value (LTV) ratios in Defi.
Members of the community have questioned the reason behind these decisions. Others released their concern about the timing, which suggests that the proposal was penetrated with a minimum statement, just when Governance critics were silenced.
Rune Christensen, founder of Sky, defended the move in a community call on Wednesday. He claimed that the changes were needed to prevent a takeover of a board. In Discord and X reports he claims a collaboration between paper empire, the pseudonym of a well -known activist investor with GFX Laboratories and board participant in Sky, and a group of investors who influence the maker.
Other prominent voices within Sky have linked NEXO to the effort, referring to a leaked plan.
Framework Ventures General partner Vance Spencer, an old maker -bull, referred to Zeus Capital in connection with the Governance Kerfuffle. Zeus Capital has been associated with Nexo in the past.
In response, paper empire quoted a long track record of positive contributions to DAO governance. “GFX has not agreed to work with Nexo, except listening to their opinion and sharing ours,” and notes that they are generally willing to “talk to someone who asks a meeting or open channel of communication In every dao in which we work, “he told Blockworks.
A Nexo spokesperson replied that “Nexo’s team is on the way back [Hong Kong]’And therefore not immediately available to refute the allegations.
“Historically, Nexo is the largest customer of Maker and we have consistently tried to proactively contribute to the long -term growth by entering into their team. We will release an exclusive, in -depth overview of the complexities of the protocol, decentralization shifts and evolving dynamics, offering and critical insights, “said the spokesperson.
Paper empire is known for often working with administrative debates and insisting on transparency reforms. The account has been vocal about Sky Governance practices and often criticized decisions that concentrate the power under insiders.
Christensen claims that the adjustments correspond to a broader effort to simplify the framework of the Seal Engine and to improve the efficiency of the governance, as described in a forum post on Wednesday. The sealing engine is part of the air with which everyone can lock MKR tokens as collateral to borrow USDS. The elimination of the EXIT allowance reflects a shift to reducing the complexity of governance, because heavenly holders would mainly delegate decisions to core executors, Christensen said.
Instead of granting an insider benefit, defenders such as “Chud” pointed out that the proposal was not only about increasing debt ceilings – it also increased the stability costs from 12% to 20%, making loans against MKR more expensive.
Christensen has considerably supported loans on Aave and Morpho, where he is subject to the more conservative LTVs and liquidation thresholds of those platforms. By allowing more aggressive loans within the air, he was able to switch his leverage away from platforms from third parties to the seal engine.
This could reduce his risk of liquidation on an Aave/Morpho – who was reportedly part of the acquisition of the board (although one that characterized Christensen as “laughable”).
“Rune refinanced his fault of Morpho/Aave and consolidated it on a maker, where his collateral can vote,” said Paper empire.
“GFX would never support a protocol or its users,” he said, called the case “a typical DAO board conflict about policy”. “
While the dust covers, the community is left with urgent questions: was the emergency proposal really about securing Sky’s future, or would rather a consolidation of control? And if governance processes can be circumvented in this way, what is to prevent it from happening again?
