Delegate Debates | #1 Delegate Compensation

Should MakerDAO’s Recognised Delegates be compensated for their efforts? If so, which delegates should be compensated, and how much?

Join us on Zoom2021-09-14T16:00:00Z to discuss these issues in our inaugural episode of the Delegate Debate series.

For background, check out the initial Delegate Compensation thread and subsequent poll.

This panel discussion/debate will be hosted by @davidutro and feature:

Please bring your questions, thoughts, and opinions about Delegate Compensation.

If you can’t make it, this recording will be posted on the MakerDAO Youtube Channel.


Some rough notes up front for the call. Still working on them :slight_smile:


Aish. Missed it. : (

Can we try pinning these calls a bit before (maybe ~1 day before)?


This full call is now available for review on the MakerDAO Youtube Channel:

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Delegate Debates #01: Delegate Compensation

September 15th, 2021


00:10: Intro
03:16: Discussion Context
8:33: Debate
52:48: Outro



David Utrobin


  • Welcome to Delegate Debates #01! I am David, the facilitator of GovComms CU at MakerDAO. These call series are in partnership with Content Production, and today’s discussion is about delegate compensation.

Discussion Context


[Informal Poll] Delegate Compensation - Forum Thread

[Informal poll] Compensating recognized delegates, parameters - Forum Thread

[Informal Poll] Potential Issue with Protocol Paid Delegates - Forum Thread

Debate Questions


8:33 - David Utrobin: What is the fundamental role of the delegate? Do you agree with the current minimal expectations? Should they be reviewed?

10:04 - David Utrobin: Nobody mentioned fiduciary duty at all in the comments from my reading. Interestingly, you brought that up.

13:35 - Someone (from chat): It is difficult to measure and verify informedness.

15:15 - David Utrobin: Can everyone that agreed to be on the panel introduce themselves?

17:28 - David Utrobin: What do you think is the most important thing to get compensation right? What is the thing that you are the most focused or concerned about?

26:26 - David Utrobin: Before we go through the actual MIP process, it is possible to do a trial to get delegates compensated as soon as possible. Joshua’s proposal can be used as a model.

28:24 - David Utrobin: For the time-limited trial, what would the next step be?

30:14 - David Utrobin: Do we have a commitment on who is going to draft the Signal thread?

31:11 - David Utrobin: One of the most controversial points is how much delegates should get paid. In your opinion, how much should delegates get paid?

37:45 - David Utrobin: Besides voting for Pay as a delegate, are there any other situations where they would be a conflict of interest?

39:46 - David Utrobin: Should delegates continue to get paid by SourceCred, regardless of what their additional compensation would be, versus not getting paid by SourceCred and getting that compensation?

43:47 - David Utrobin: What would be the criteria for awarding this base-pay?

46:25 - David Utrobin: Do you disagree with the idea of having a total cap of Dai or MKR value distributed to delegates? Do you disagree that it should be a cap in terms of how much a delegate gets paid?

47:51 - David Utrobin: There has been no disagreement on a Gas refunds program. Some people think it could be gamed, but it cannot be gamed if it is well-designed. I believe there should be at least a minimal gas compensation.

49:55 - Back to the SourceCred question


David Utrobin


  • This was an extremely interesting call. I want to thank all the panelists and everyone who joined the conversation. I am excited to get delegates paid.
    • Andrew Burban: Income is not favorably taxed in some countries. If we have a portion of the compensations covered as expenditures, that is not going to be taxable, and the rest on MKR should be taxed as a capital gain. Whoever might be open to that model of compensation, this would be an interesting tax structure.
  • I would like to see a program where delegates have a choice. Thank you for that ending comment! Have a good day!


  • @gala
  • Everyone who spoke and presented on the call, listed in the headers.

Who invited @aburban90? Saboteur!