MIP40c3-SP29: GovAlpha Core Unit Budget Q4 2021 to Q1 2022 - GOV-001

MIP40c3-SP29: GovAlpha Core Unit Budget Q4 2021 to Q1 2022 - GOV-001

Preamble

MIP40c3-SP#: 29
Author(s): Payton Rose (@prose11)
Contributors: @LongForWisdom
Tags: core-unit, cu-gov-001, budget, dai-budget
Status:  Formal Submission
Date Applied: 2021-08-11
Date Ratified: - - -

Sentence Summary

MIP40c3-SP29 adds the budget for Core Unit GOV-001: GovAlpha for October 2021 through March 2022.

Paragraph Summary

MIP40c3-SPX adds the budget for Core Unit GOV-001: GovAlpha for October 2021 through March 2022. We are requesting a 6-month budget allocation of 538,400 DAI or 89,733.33 DAI streamed per month.

Motivation

We are proposing this Core Unit Budget modification because GovAlpha requires an operating budget to fulfill its mandate. We have switched to proposing a 6-month budget due to the quick turnaround with proposing new 3-month budgets and our experience running the GovAlpha Core Unit thus far.

Core Unit Name

GovAlpha (GOV-001)

Q4 2021 Focus

Delegation

As stated in our last budget request:

Subsequent to the launch of delegation, we plan to continue to organize and deliver improvements and integration of delegate functionality into the voting portal.

With Delegation officially online, our focus has shifted toward improving the process for all parties involved. GovAlpha has worked closely with the DUX Incubation Unit to get the Delegation UI launched and is impressed by the quality of work from the team.

We aim to add more features to the portal through this collaboration in the coming quarters. We also play to work with the Content Production and Governance Communications Core Units for communication channels with the delegates.

Going forward, as the DAO itself scales we expect our delegation efforts to follow suit. We expect the amount of MKR delegated to increase as custody platforms integrate with the delegation contracts. As the amount of MKR delegated increases, so will the influence of the delegates. We will need to manage this transition as Governance power shifts towards known delegates and away from anonymous MKR Holders.

Robustness

As the DAO grows and governance decisions become more meaningful and impactful, Governance must continue both smoothly and effectively.

In this budget cycle, we intend to spend more resources finding different tools to help improve the Community Governance experience. We plan to find new plugins to implement in the forum as well as iterate on public GovAlpha resources.

We’d also like to expand our coverage of MIPs such that MIP Editors are available to give meaningful feedback to MIP authors at all points of the submission process.

We intend to use some of our funding as noted below for “Governance Mechanism Hardening,” namely obtaining a Game Theory Audit on our current Governance mechanisms. This information will be useful to the DAO at large, but should also help guide us for the exploration of new mechanisms in Q1 next year.

Q1 2022 Focus

Participation

Vote participation remains a pressing concern of GovAlpha. We noted in July some of the struggles and resulting Governance decisions that were made due to low voter engagement. While we plan to focus heavily on voter delegation in Q4 of this year, we are aware that there is no guarantee that delegation will solve all participation issues.

To that end, we intend to spend a decent amount of time confronting any remaining participation concerns after Vote Delegation is fully established. Our experience and observations in Q4 will guide this focus further, and we believe this is another goal worthy of collaboration with other Core Units.

Exploration

Depending on the results of our Game Theory Audit and research on Governance Robustness, we plan to spend on implementing fixes and improvements suggested by our Q4 evaluations.

This is primarily noted in our line item for “Misc. Dev Work” in our detailed budget. We expect some of this to be spent on designing custom Discourse Plug-Ins and note the potential for use on testing new ways for Community Governance to vote and reach consensus.

Team Membership

The GovAlpha Team will consist of at least the following members for the next two quarters.

– Facilitators –
@LongForWisdom - Partial Commitment - Facilitator - Experienced
@prose11 - Full Commitment - Facilitator - Moderate Experience

–MIP Editors–
@blimpa - Full Time - MIP Editor

–Contributors–
@Elihu - Part Time Contributor
@Gala - Part Time PM / Operations
@Sebix - Part Time Contributor
@AstronautThis - Part Time Contributor
@Mkrorbkr - Part Time Contributor
@ultrashuppi - Part Time Contributor (pending Core Unit application)

Combined Q4 2021 and Q1 2022 Budget - October 2021 to March 2022

Facilitator Remuneration

There is no change to this section compared to the previous quarter

Remuneration for Facilitators of GovAlpha will be an annual salary paid monthly. The size of the annual salary will begin at a base rate that is equal for all facilitators and is then modified based on the level of the individual facilitator’s time commitment and experience.

The multiplier for partial commitment is higher than one might initially expect given the hours contributed compared to a full-time commitment. This is because facilitators with a partial commitment have the same requirements to be available in emergency situations and take an equal share of responsibility when fulfilling the GovAlpha mandate.

Base Pay 120,000 DAI
Multiplier Explanation
Commitment - Partial 0.80x Part Time commitment, 20 hours per week minimum.
Commitment - Full 1.00x Full Time commitment, 35 hours a week minimum.
Experience - Limited 0.65x New to the role, would not be able to fulfill responsibilities alone.
Experience - Moderate 1.00x Confident in the role, capable of fulfilling critical responsibilities alone.
Experience - Experienced 1.50x Experienced in the role, capable of fulfilling all responsibilities alone.
Partial Commitment Full Commitment
Experience - Limited 62,400 DAI 78,000 DAI
Experience - Moderate 96,000 DAI 120,000 DAI
Experience - Experienced 144,000 DAI 180,000 DAI

Budget Breakdown - October through March (combined)

Item Amount
People
Core Unit Facilitators (2) 132,000 DAI
Other Personnel (2.4 FTE) 88,000 DAI
Programs
SourceCred Payouts 156,000 DAI
SourceCred Customization/Support 12,000 DAI
SourceCred Tithe 7,800 DAI
DaiStats Support 3,000 DAI
CatFlip Equivalent Development 30,000 DAI
DAI Backing Support 2,500 DAI
MIPs Portal 15,000 DAI
Forum Customization 10,000 DAI
Exploration
Governance Mechanism Hardening 12,000 DAI
Snapshot 5,000 DAI
Misc. Development Work 10,000 DAI
Admin
Payroll Software 100 DAI
Other Costs
Contingency Buffer 30,000 DAI
Gas 5,000 DAI
Travel 20,000 DAI
Total 538,400 DAI

The full budget can be found here.

Remarks

CatFlip Equivalent Development

This new line item is intended to provide a parameter-focused frontend for the community. Part of the intention is to build redundancy in relevant Governance UIs, with the main goal to have a functioning portal featuring the current settings of parameters controlled by Governance.

We have contracted the same team (dSpot) that created the MIPs Portal. We are impressed by the rate and overall product in that project and look forward to delivering more value to the community through this relationship.

Snapshot

Setting up a Snapshot instance has been a goal of GovAlpha for some time. As we get closer to achieving that goal we decided to budget some funds for iterating on the instance.

This could range from UI commissions to dev work on the voting strategies, but we felt it was an important request to ensure we can use the tooling to the greatest effect.

Contingency Buffer

We were more conservative in our budget forecasts for this proposal, partly noted by our Contingency Buffer being far lower than in previous proposals. This reflects both an awareness of the current revenue of the DAO being lower than our previous proposals as well as an acknowledgment that we have not been spending as much as requested so far.

While our allocations are more measured in this proposal, we do not expect this to restrict our operations in the slightest. For greater insight into our spending effectiveness please see our Quarterly Report for Q2 and in particular our Spending Conclusions.

Travel

As in-person events once again become a regular occurrence, we wish to budget explicitly for any travel expenses that may arise in the next few months. A missed opportunity to attend ETHCC gave a window into the estimated costs for these events, resulting in an increase to our quarterly allocation from the last budget.

Budget Implementation

GovAlpha has set up a Governance-owned multi-signature wallet that will be used to administer the funds allocated to fulfilling the GovAlpha mandate. The details of this multi-sig wallet are as follows:

Multi-sig Address:
0x01D26f8c5cC009868A4BF66E268c17B057fF7A73

Keyholders:
@LongForWisdom - 0x66f40F044E0e2F77bB746e3275E82e88dCBA2D69
@prose11 - 0xf3ED2bdeBa77940E6759B806cd55CE20cAE369BE

GovAlpha is proposing a streamed payment for these two-quarters of expenses. This proposal comes to a streamed amount of 89,733.33 DAI per month.

If DssVest or another protocol-approved method for streaming DAI is not in place, transfers should be included in the first executive of the month. In the event of the first executive of the month failing to pass successfully, transfers should be included in the next available executive vote.

Payout Dates (if no streaming is available)
Month of October - 89,734 DAI
Month of November - 89,733 DAI
Month of December - 89,733 DAI
Month of January - 89,734 DAI
Month of February - 89,733 DAI
Month of March - 89,733 DAI

6 Likes

Thank you! I hope other CU switch to this as well. A lot of work reading thru all of these CU budgets. I don’t mind, but just to go thru them all–takes a lot of time. Or, maybe a few do 6-month, and others 3-months–just speaking for myself.

This is super cool–I would imagine Gauntlet would have been a candidate–who do you have in mind?

So, for me personally ( and maybe I missed it) I don’t see any word on tackling incentives to motivate MKR token holders to Vote, and/or Delegate. Any thoughts, or is this also apart of the goals for Q4? I’m sorry if I missed that part. My eyes are tired.

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Have reached out to a few firms so far, good suggestion on Gauntlet. We’re looking for theoretical Game Theory expertise rather than integrity of the code here which is why I went fishing outside the standard auditors, but perhaps that was a mistake. Emails are free tho so i’ll be reaching out :slight_smile:

You are correct, I was intentionally pretty vague here are we’d like to let the audit and subsequent discourse around voting participation guide our actions here. Especially for things like incentives it will be up to the community to decide if they want them, GovAlpha will stay as neutral as possible by simply presenting the findings of the third party research and some options that would fit their recommendations.

In general though, I think we won’t be able to judge the effectiveness of delegation until some key custodians allow for use of the contract. Once the big players are able to delegate we’ll be able to say a lot more about how effective the program is with increasing participation.

1 Like

Formally submitting for the September cycle @MIP-Editors :+1:

2 Likes