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:
@Joshua_Pritikin
@Planet_X
@ElProgreso
@twblack88

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.

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

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Aish. Missed it. : (

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

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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

Agenda

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

Video

https://www.youtube.com/watch?v=ls9HDfE3tgk

Intro

David Utrobin

00:10

  • 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

03:16

[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

Notes

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

Outro

David Utrobin

52:48

  • 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!

Credits

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

Who invited @aburban90? Saboteur!

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