The Sky governance, formerly known as MakerDAO, has implemented an emergency proposal that makes significant changes to MKR's role in the ecosystem. The proposal eliminates the 5% exit fee on MKR withdrawals, increases borrowing against MKR collateral, raises borrowing rates, and lowers liquidation thresholds. However, critics argue that these changes increase the protocol's risk of exposure. There are debates over transparency, process integrity, and the risk implications for DAI/USDS. Founder Rune Christensen defended the move, stating it was necessary to prevent a governance takeover. Community members have questioned the rationale and timing of the decision. There are allegations of cooperation between known activist investor PaperImperium, GFX Labs, and a group of investors hoping to gain influence in Maker. Nexo, a prominent voice in the matter, has been linked to the effort. The community is left with questions regarding the true motives behind the emergency proposal and the potential for future bypassing of governance processes.



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