That seems insufficient protections to be honest. Suppose MKR increases the governance Delay, that still means that an evil executive contract could still pull this off, as long as it it’s not obviously fraudulent. So if a group can convince others that they are a superior and more decentralized governance model, if they can sneak some functionality in that goes unnoticed, then they can get executive vote, then wait for the delay and then steal all the collateral. In fact, it makes the system more complex because it’s not only about auditing the Maker code, but also the code of any executive contract candidate.

Why does maker even allows the collateral to be moved to arbitrary addresses, instead of having a very strict rules of when and who can get the collateral?

Designer, Ethereum Foundation, Mist Browser.

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