Sky (formerly Maker) governance is facing controversy over a proposal that relaxes restrictions on borrowing against the MKR governance token. The proposal, which bypassed due process, would increase the credit line for MKR holders and raise the loan-to-value ratio. Concerns were raised over risk management, censorship, and the potential delegitimization of Maker's governance reputation. The proposal was passed despite calls for further explanation. Screenshots and whistleblower reports suggest a plan to accumulate MKR voting power and conduct a takeover of the protocol's governance, leading to worries about malicious governance actions. This is not the first time a DeFi protocol has faced criticism over the accumulation of voting power in on-chain governance systems.



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