MakerDAO Treasury Manager Monetalis Survives Ouster Vote

As a crypto investor with experience in DeFi and MakerDAO, I’ve been closely following the recent developments surrounding Monetalis and their reporting responsibilities within the MakerDAO ecosystem. The outcome of the recent vote, which initially favored those seeking to oust Monetalis but ultimately shifted in their favor, has left me with mixed feelings.

At first, backers of Monetalis’ removal were in the lead during the voting process. However, a substantial number of votes from prominent MakerDAO delegates changed the tide last week, resulting in Monetalis losing. The proposal’s creator, nevertheless, considered it a “moral triumph.”

MakerDAO, the organization behind the production of the DAI stablecoin, holds significant influence in the Decentralized Finance (DeFi) sector, boasting more than $7.7 billion in user deposits. According to DefiLlama’s figures, the total value secured within the MakerDAO system amounts to approximately $5.917 billion. Notably, this figure reached a peak of $5.75 billion in 2021, but has since experienced a substantial decline.

As an analyst, I’d rephrase it as follows: The current market price of MakerDAO’s native token, MKR, is $2,217 based on data from CoinMarketCap, with a total market capitalization of $2.056 billion. In their recent report published last Friday, June 21, Monetalis acknowledged and responded to the community’s concerns by delivering overdue reports and announcing an upcoming audit scheduled for July.

Monetalis to Transfer Reporting Responsibilities

Monetalis relinquishes its reporting duties to AccountAble. In recognition of this move, GFX Labs, a representative of the MakerDAO community pushing for change, expressed gratitude in a governance forum post. Rune Christensen, MakerDAO’s founder and a Monetalis investor, supports significant updates to the Maker protocol to tackle voter disengagement and other concerns. This situation has sparked discussions about the protocol’s governance impartiality.

As an analyst, I’d rephrase it this way: The emergence of conflict arises as MakerDAO pushes for growth with the introduction of PureDAI, a decentralized stablecoin designed to supplant DAI. Notably, the fully-formed version of this new DAO product will be made available without any subsequent updates or modifications.

Monetalis is responsible for overseeing two US Treasury investments for MakerDAO: Clydesdale and Custody with Coinbase. The proposed removal of Monetalis from this role by GFX Labs stemmed from their failure to meet several reporting deadlines and deliver on a promised audit. While US Treasuries offered a yield of 5% in 2023, the performance of Clydesdale brought back less than 4% for MakerDAO based on Steakhouse’s data. Conversely, BlockTower reported returns of approximately 5% during the first half of 2023 when managing US Treasury investments for MakerDAO.

Monetalis faced criticism from GFX Labs for inconsistent reporting and disappointing performance of the Clydesdale vault relative to its underlying assets and Andromeda, an investment managed by BlockTower.

As a researcher studying the recent discussions in MakerDAO’s governance forum, I came across Monetalis’ response regarding the criticisms leveled against them. They acknowledged that implementing the new reserve reporting and structure standards took more time than initially anticipated. However, they vehemently refuted any allegations suggesting their management had resulted in substantial financial losses for MakerDAO.

As a researcher studying MakerDAO’s recent events, I’ve come across companies such as Mountain Protocol and Superstate, which have expressed their readiness to provide services should Monetalis get voted out during the decision-making process. The voting commenced on June 10, with several influential members initially advocating for Monetalis’ removal. However, a shift occurred last week, as crucial delegates cast their votes against the ouster, thereby reversing the initial trend.

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2024-06-25 12:09