MIP40c3-SP36: Deco Fixed Rate Core Unit MKR Budget

MIP40c3-SP36: Deco Fixed Rate Core Unit MKR Budget

Preamble

MIP40c3-SP#: 36
Author(s): Vamsi Alluri @Vamsi
Contributors: 
Tags: core-unit, cu-deco-001, budget, mkr-budget
Status: Accepted
Date proposed: 2021-09-08
Date Ratified: 2021-11-22

Sentence Summary

MIP40c3-SP36 adds a MKR budget for the Core Unit DECO-001: Deco Fixed Rate Core Unit on a fixed MKR budget of 500 MKR annually, utilizing a 12-month cliff and vesting quarterly, for the fixed period of December 1, 2021, through December 1, 2024, (36 Months).

Specification

Core Unit ID

DECO-001

Wallets

There will be Two (2) multisig wallets each of which will serve a separate function, and which will be identified as: the Deco Operational Wallet, and the Deco Auditor Wallet.

  1. The Deco Operational Wallet:
    The Operational Wallet is a 2-out-of-3 multisig wallet controlled by the Deco Core Unit. The Deco Operational Wallet receives MKR, three (3) months prior to vesting, and releases the MKR upon vesting.
    Address: 0x56349A38e09f36039f6AF77309690d217Beaf0bF

  2. The Deco Auditor Wallet:
    The Deco Auditor Wallet is a 2-out-of-3 multi-sig wallet controlled by trusted MakerDAO members composed of representatives from core units outside of the Deco Core Unit. Initially, the proposed signers are to be SES Core Unit members similarly to current incubator implementations. This wallet receives MKR Six (6) months in advance of vesting. Three (3) months prior to Vesting the Auditor Wallet sends the MKR to the Deco Operational Wallet.
    Address: 0xF482D1031E5b172D42B2DAA1b6e5Cbf6519596f7

Total MKR Expenditure

The total MKR expenditure will not exceed 1500.00 MKR. This budget covers a three-year term for the entire Deco Fixed Rate Core Unit from November 1, 2021, through November 1, 2024. This MKR budget includes no manual repricing option and no automatic renewal. The initial cliff is 12 months, with quarterly vesting thereafter.

MKR Vesting

Transaction Date MKR to Auditor Wallet MKR to Deco Operational Wallet MKR Vested
1-Jun-22 500 0 0
1-Sep-22 125 500 0
1-Dec-22 125 125 500
1-Mar-23 125 125 125
1-Jun-23 125 125 125
1-Sep-23 125 125 125
1-Dec-23 125 125 125
1-Mar-24 125 125 125
1-Jun-24 125 125 125
1-Sep-24 0 125 125
1-Dec-24 0 0 125
Total MKR 1500
Parameter Value
Vesting Period 3 years
Cliff Vest 12 months
Vesting Interval 3 months
Manual Repricing No
Auto-Renewal No

Payment Implementation

The MKR payment implementation will have two elements and include a phased MKR distribution comparable to the DUX MKR Flow. The first is a Deco Reserves multisig and a the second is a Deco Operational wallet. The Auditor Wallet will receive each MKR disbursement Six (6) months prior to the vest date. Three (3) months prior to vest the MKR will be distributed from the Auditor Wallet to the Deco Operational wallet requiring a 2 of 3 quorum for release to vesting. Upon vest, the Deco operational wallet will release the vested MKR.

This payment implementation makes no assumptions regarding the origin of the MKR. It may be moved from the protocol’s treasury, newly minted, or obtained from another source.

The MKR that is held by the Deco Auditor Wallet and the Deco Operational Wallet will not be used for voting, signaling, or any other type of governance participation. It will remain in the wallets untouched until it moves to the next step in the process.

The Deco team may consider alternative payment flows compliant with DssVest if the standardized flow is compatible with the vesting schedule and that the risk is deemed acceptable by the team.

1 Like

Payment Implementation details updated.

We’re putting this up for formal submission.

2 Likes

Please note that we have made some modest changes to the Deco proposal, for Formal Submission in the November cycle, to bring it into closer alignment with Maker general practices and by accepting a few suggestions.

  • Operational Entity following Integration. Upon completion of the integration of the Deco Protocol, the administrative, operational, and maintenance obligations, including legal, will be transitioned from the Core Unit to a separate legal entity, DecoM, which will function in alignment with Maker policy and procedures.
  • Reimbursement of All Payment to Deco. Deco will reimburse/credit to Maker in Dai all payments before receiving Revenue Share. Maker will pay to Deco 15% of the revenue from the Fixed-Rate CLAIM_FEE token sales only AFTER it has reimbursed the Deco Core Unit, and DecoM operating expenses, advanced by Maker, and any MKR distributions which are to be valued in Dai as of the date of acceptance and approval by Executive Vote Pass and to be utilized through December 1, 2024.
  • Budget. Also, there was a modest increase in the budget for legal.

We again look forward to any questions you may have as we seek to integrate the Deco protocol for Maker.

Best,
Vamsi

1 Like

We’re putting this up for formal submission.

1 Like