Reported today on Being Crypto For the full article visit:
MakerDAO Can Terminate Your Dai System Access 'Without Prior Notice,' Reads Fine PrintMakerDAO specializes in decentralized loans issued on an Ethereum powered stablecoin, Dai. However, the fine print tells us a different story: one where users can be cut off without notice.Nobody ever reads the fine print. The good news is that decentralized systems generally don't have fine print, due to the fact that a decentralized entity has no power to kick or remove you -or at least we thought. It turns out that MakerDAO has some fine print which may concern some of its users.Reading MakerDAO's Fine PrintAs pointed out by grubles (@notgrubles) on Twitter, the fine print in MakerDAO's terms and conditions should cause us to pause. Under section 9, the terms read that MakerDAO is able to "terminate or suspend all or part of the Service and your Dai System and Software access immediately, without prior notice or liability." This can only happen if a user is suspecting of breaching any of the other terms or conditions of use for the MakerDAO.DeFi pic.twitter.com/eiHQdKcjbv - grubles (@notgrubles) November 18, 2019Is this what decentralized finance is all about? Some Ethereum critics have been quick to point this out as a flaw, but the story is, in truth, a bit more complicated.Not a Cause for AlarmOf course, fine print like this is to be expected. After all, there has been no known case of MakerDAO users being removed without notice. It can be argued that the stipulation was just included out of regular legal habit and will likely never be used.Moreover, no central entity is able to shut down MakerDAO. Existing as a decentralized autonomous organization, the supermajority of MKR tokens holders would have to vote to suspend particular activities. Such a move would not only be extremel
0 Comments