- Members of the MakerDAO community have ratified its new ‘Constitution’
- Lack of demand forces MKR’s value to drop.
Members of the MakerDAO [MKR] community voted in favor of a set of proposals on 27 March, which included “The Maker Constitution,” a set of new governance rules that have introduced significant changes to the leading decentralized finance (DeFi) protocol.
Read Maker’s [MKR] Price Prediction 2023-24
Authored by Maker CEO and co-founder Rune Christensen, The Maker Constitution was described as:
“A strategic tool for building as much resilience as possible into the political and operational interactions and processes that occur in Maker Governance.”
The Maker Constitution forms part of the protocol’s “Endgame Plan” roadmap proposed by Christensen. The Endgame Plan was aimed at decentralizing governance at MakerDAO and promoting widespread DeFi innovation.
The Maker Constitution introduces several changes to MakerDAO. This included creating a “purpose system” to allow for token allocations to SubDAOs, implementing a standardized and regulated voting application, and inviting external entities to facilitate governance operations.
It establishes a delegation system to generate more DAI, introducing voter incentives and modifiable subcomponents to promote decentralization.
Additionally, the Maker Constitution proposes the restructuring of the protocol’s governance through the creation of committees such as Constitutional Voter Committees (CVCs), Constitutional Delegates (CDs), and Constitutional Conservers (CCs).
Also, there will be a continuation of the function of Core Units and project-based funding. This was in addition to the launch of six new SubDAOs alongside Endgame activation, and the establishment of a process for amending the constitution.
These changes were aimed at decentralizing MakerDAO further. Moreover, it enabled community-driven decision-making while improving the stability of the DAI stablecoin.
Liquidity drought gives MKR a tough time
MKR was trading at $681.40 at press time. However, the absence of new demand since the middle of March caused the token’s value to drop by 30%.
According to on-chain data provider Santiment, the count of daily new addresses trading the altcoin peaked at 205 new addresses on 11 March, after which it fell by 89%. For context, MKR closed the trading session on 27 March with only 99 new addresses.
Source: Santiment
How much are 1,10,100 MKRs worth today?
On a daily chart, MKR was oversold at press time. Its Money Flow Index (MFI) sat at 26.08. Moreover, its Relative Strength Index (RSI) remained below the 50-neutral spot at 43.38. These showed that MKR accumulation dwindled in the past two weeks.
With the token’s Chaikin Money Flow (CMF) positioned in the negative territory at -0.04, a bullish conviction might be imperative to initiate a price correction.
Source: MKR/USDT on TradingView
