MIP40c3-SP38: Real-World Finance Core Unit MKR Compensation (RWF-001)

MIP40c3-SP38: Real-World Finance Core Unit MKR Compensation (RWF-001)


MIP40c3-SP#: 38
Author(s): Sébastien Derivaux (@SebVentures)
Tags: core-unit, cu-rwf-001, budget, mkr-budget
Status: Accepted
Date Applied: 2021-09-22
Date Ratified: 2021-11-22

Sentence Summary

MIP40c3-SP38 adds the MKR Compensation budget for Core Unit RWF-001: Real-World Finance.

Paragraph Summary

This proposal contains the MKR Compensation budget for the Core Unit RWF-001: Real-World Finance. This proposal is based on Alternative MKR Compensation Guidelines by @Aes. It provides an average of 80 MKR per FTE per year over 3 years with a 1 year cliff.

Team MKR Compensation Plan

We used Alternative MKR Compensation Guidelines by @Aes, currently a MIP in RFC phase, as it was extensively discussed with plenty of time for comments.

Vesting Details

Property Value
Vesting Period 3 years
Cliff Vest 12 months
Vesting Schedulue After the cliff has expired, the Quarterly MKR amount vests every 3 months and is distributed on July/Oct/Jan/Apr 1st, depending on each individual onboarding
Estimated Max Total team MKR After 1 Year (7 FTE)* 560
Estimated Max Total team MKR After 3 Years (7 FTE)* 1,680

Note that this estimation is based on all 7 FTEs joining the Real-World Finance Core Unit on day 1. There are currently only 4.5 FTEs working for the Real-World Finance Core Unit, some having joined recently.

Equality The MKR compensation is planned to be flat between contributors with a difference between the highest and lowest below x2 on a FTE basis (vs x3 in the guidelines).

Inclusion of non full-time contributors While the Core Unit is looking to be filled by full-time contributors, we recognized that experimented part-time members are bringing significant value to the Core Unit. Therefore, they will be included pro-rata of their participation.

Transferability We anticipate people from the Core Unit to migrate to another Core Unit and/or create their own Core Unit at some point. Any accrued MKR will be transferred to the person at the end of the vesting period.

MKR Vesting Schedule

MKR Total
April 2022 560
July 2022 140
October 2022 140
January 2023 140
April 2023 140
July 2023 140
October 2023 140
January 2024 140
April 2024 140

This covers the total vesting schedule of 3 years for the planned 7 FTEs.

On average, the team MKR vesting schedule yields 80 MKR per FTE per year, or 560 MKR in total per year. Excess MKR token will be returned to MakerDAO with the DSPause address or any other address achieving the same purpose.

Payment Implementation

MKR compensation is based on Manual Budget Implementation, the Simple one and the same as used for the regular budget, or any other method achieving the same result at the discretion of the Governance Facilitators. Real-World Finance Core Unit may consider alternative payment flows compliant with DssVest if the standardized flow is compatible with the vesting schedule.

  • Payment: based on predetermined MKR compensation schedule
  • Asset type: MKR, minted or coming from an existing source.
  • Address: 0x9e1585d9ca64243ce43d42f7dd7333190f66ca09

How is this compensation vesting compare with facebook and google?

The comparable industry would probably be finance. I provided some comps in the DAI budget.

For those that started at the beginning of the CU (April), the MKR price was $1.1k (taken from the Risk MKR compensation) meaning $88k per person. I think the comparison is quite fair.

Regarding other CUs, I think we are asking for a fair number even if such a thing is subjective.

Can we move it to formal submission ping @blimpa

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