The Mars Protocol has progressed to the on-chain governance phase with the formal submission of proposal MRC-165, which seeks to wind down the protocol due to concerns about reduced growth prospects, operational overhead, and governance complexity. If the proposal is approved, the wind-down will start on February 24, 2026, involving a gradual reduction of liquidation loan-to-value ratios and progressive deleveraging, culminating in the complete clearance of outstanding debt by March 21, 2026. This structured process aims to eliminate risks while ensuring a transparent closure and the return of remaining funds to depositors.
Mars Protocol governance proposal moves to on-chain voting for wind-down
