Maker Governance Review: 2021

:tea: Top Governance News of 2021

2021 has been an exciting year for governance and the DAO overall. Within the first months, the Maker Foundation dissolved and opened the door for the first Core Units to develop.

During Q2, Maker released the long-awaited Liquidations 2.0, which significantly reduced collateral vaults’ risk and price volatility. Shortly after, a new and improved Monthly Governance Cycle was formalized through MIP51, and the Flash Mint Module was activated, allowing anyone to mint as much Dai as they need.

Q3 of 2021 has been a particularly significant year for governance with the release of Vote Delegation. There are now 9 Recognized and 9 Shadow Delegates in less than six months, totaling over 100,000 MKR, being delegated!

If that isn’t enough, coming into the end of 2021, Rune Christenson posted The Case for Clean Money, which envisions Dai being used to drive investment in clean energy sources at a global scale with the power of DeFi. This change in direction led to several polls and discussions towards the next steps to help meet this vision.

As 2021 comes to a close, the DAO did not cool off; The first Core Unit originated during early 2021, but by the end of December, the year closed with a total of 15 ratified Core Units!

Here’s the top news from 2021:

Q1

Q2

Q3

Q4

Key Outcomes for December

Core Unit Budget Distribution

Replacing MKR Vesting Streams

As per this successful governance poll, the following MKR vesting streams were canceled and replaced by streams funded by the Protocol Treasury (Pause Proxy):

Core Unit Amount Stream Dates Thread
Protocol Engineering Core Unit (PE-001) 13,930 MKR 995 MKR (pp) streamed over 4 years Thread
Oracles Core Unit (ORA-001) 1,051.25 MKR July 1, 2021 through July 1, 2022 Thread
Growth Core Unit (GRO-001) 803.18 MKR July 1st, 2021 through July 1st, 2022 Thread

Delegation

Recognised Delegate Compensation Trial Performance Modifier

This governance vote has passed to express support for a performance modifier determining compensation in the delegate compensation trial. The compensation method for this trial can be found in MIP61. Read the discussion thread here.

Delegate Compensation Payments - November

As per these successful governance polls (1, 2) and the trial of delegate compensation, a total of 35,834 DAI was distributed to four recognized delegates as detailed below:

Amount Delegate Thread
12,000 DAI FlipFlopFlap Delegate LLC Thread
12,000 DAI Feedblack Loops LLC Thread
8,144 DAI ultraschuppi Thread
3,690 DAI Field Technologies Inc. Thread

Governance Communications (GOV-001) Core Unit One-Time Payment

As per this successful governance poll, a total of 27,058 DAI was transferred to the Governance Communications Core Unit (COM-001).

For further details on this distribution, please check the relevant signal thread here.

Parameter Changes

Stability Fee

Vault Old New Thread
ETH-A 2.5% 2.75% Thread
ETH-B 6.0% 6.5% Thread
LINK-A 1.5% 2.5% Thread
MANA-A 3.0% 6.0% Thread
UNI-A 1.0% 3.0% Thread
GUSD-A 0.0% 1.0% Thread
UNIV2DAIETH-A 1.5% 2.0% Thread
UNIV2WBTCETH-A 2.5% 3.0% Thread
UNIV2USDCETH-A 2.0% 2.5% Thread
UNIV2UNIETH-A 2.0% 4.0% Thread
GUNIV3DAIUSDC1-A 0.5% 0.1% Thread

Maximum Debt Ceiling (line)

Vault Old New Thread
wstETH-A 50 million DAI 200 million DAI Thread
MATIC-A 20 million DAI 35 million DAI Thread
WBTC-A 1.5 billion DAI 2 billion DAI Thread

Target Available Debt (gap)

Vault Old New Thread
wstETH-A 3 million DAI 20 million DAI Thread
MATIC-A 20 million DAI 10 million DAI Thread
WBTC-A 60 million DAI 80 million DAI Thread

Debt Ceiling Increase Cooldown (ttl)

Vault Old New Thread
wstETH-A 8 hours 6 hours Thread

Auction Price Multiplier (buf)

Vault Old New Thread
wstETH-A 1.3 1.2 Thread

Local Liquidation Limit (ilk.hole)

Vault Old New Thread
wstETH-A 7 million DAI 15 million DAI Thread

Debt Floor (dust)

Vault Old New Thread
ETH-B 30,000 DAI 40,000 DAI Thread
All Eligible Vaults 10,000 DAI 15,000 DAI Thread

Vault Onboarding

As per this successful governance poll, the GUNIV3DAIUSDC2-A vault type was onboarded to the Maker Protocol with the parameters listed here.

D3M

Net Rates Spread

This governance vote has passed to express support for recommending the following rates spread between AAVEv2 borrow markets and Maker ETH-A stability fee for the DAI Direct Deposit Module (D3M):

  • -0.5% spread (implied bar at 3.75%).

Read the discussion thread here.

Debt Ceiling Targeting

MKR holders voted in this governance poll to rank their support to recommend the following target Debt Ceilings for the DAI Direct Deposit Module (D3M):

Debt Ceiling Vote Breakdown
30% of Real AAVEv2 DAI Supply 57,501.47 MKR (73.01%)
25% of Real AAVEv2 DAI Supply 20,210.03 MKR (25.66%)
Abstain 1,000.00 MKR (1.27%)
Neither Indicated Percentage of Real AAVEv2 DAI Supply 49.06 MKR (0.06%)

Community Greenlight Polls

Greenlight Polls allow MKR token holders to signal their preferences for collateral types proposed through Collateral Onboarding Applications. Community greenlight polls occur at fixed times each governance cycle, starting on the 1st and 3rd Mondays of the month and run for two full weeks

  • December contained two community greenlight polls:
Debt Ceiling Vote Start Date End Date No Vote Yes Vote Abstain Vote Score
G-UNIv3-DAIUSDP Vote December 6, 2021 December 20, 2021 71,067.51 MKR (89.78%) 8,089.67 MKR (10.22%) 0.00 MKR (0.00%) Score
aUST Vote December 6, 2021 December 20, 2021 0.24 MKR (0.00%) 27.77 MKR (0.04%) 79,157.36 MKR (99.96%) Score

Check the progress of all proposed collateral types in the Collateral Status Index.

What’s Ahead for 2022?

2021 has been full of growth and maturation, and we should expect no less for 2022, which is presumed to be the year of DAOs and stablecoins. Who’s ready!?

Here are some things to look forward to this year:

  • More calls:

    • We now have Issue Discussion Calls, LexMaker, internal and public calls, and more! Governance Communications, Content Production, GovAlpha, and other Core Units are working together to help scale communication, discussion, updates, and project management through new calls. You can find currently available public calls here.
  • Q1 Core Unit budget modifications:

    • As the new year rolls around, it’s about that time for many Core Units to begin updating their budget modifications for Q1, 2022. Keep an eye out on the forums for budget modifications here.
  • January’s first executive:

    • The first Executive Vote of the year is expected to go live on Friday, January 7th, 2022.
  • Delegation overall improvement & compensation:

    • Last year contained a lot of focus and discussion around delegation, delegate compensation, and optimization. With an entire year ahead of us, there will likely be continued discussion and implementations made to improve delegation overall.
  • Improving Core Unit financial management:

    • With the number of Core Units scaling at a phenomenal rate, many concerns have been brought to light regarding MakerDAO revenue and spendings. In response, @Aes, along with others, has taken the initiative to help publish recurring expenses and budget reports. Look out for further discussion and posts as we continue to gather more information and analysis on the financial status of MakerDAO.

“if the current market remains stable we would expect $157.8M in revenue next year”
- @Aes in MakerDAO Budget Simulator - 11+1 Revenue & Cash Flow Forecast

Resources

Public Calendar
Bookmark or Subscribe to this calendar for Votes and Public Calls.

Forum and Maker Chat
Discuss and debate MakerDAO.

Participation Tools
Library of useful links for Stakeholders; Protocol analytics, Dai analytics, collateral & liquidation metrics, governance history, and auction data.

Governance Portal
Voting dashboard for MKR voters.

Learning Portal | Technical Documentation | MIPs Portal
Learn more about the Maker protocol.

MIP51: Monthly Governance Cycle | MIP16: Weekly Governance Cycle
Learn more about the Governance activities that occur during the Monthly and Weekly Governance Cycles.

Disclaimer

Disclaimer: This update is assembled by a group of contributing members in the MakerDAO community. This does not serve as financial advice or an inducement to vote in any specific way. This update is purely for information and communication purposes only.

Feedback Survey

We encourage you to complete our 3-question feedback survey.

8 Likes

2021 was undoubtedly the best year of the protocol, we grew so exponentially and all thanks to the relevant actions of the governance, although there were many things to do and several things to improve, 2022 known as the year of the L2 maker will not be left behind and will be better every year.

HNY!!!

3 Likes

2022 is foretold to be the year of the DAO and stablecoins :crossed_fingers:

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