MIP40c3-SP#: Author(s): @deim0x Contributors: Status: Request for Comments (RFC) Date Applied: 2021-06-09 Date Ratified: <yyyy-mm-dd>
MIP40c3-SPXX adds the MKR Incentive Plan budget for Core Unit GOV-001: Governance Alpha.
MIP40c3-SPXX adds the MKR Incentive Plan budget for Core Unit GOV-001: Governance Alpha. It contains:
- Total MKR Expenditure Cap
- Estimated MKR Expenditure (based on the current team)
MKR incentives have been determined based on the SES MKR Compensation Program discussed here. This is a 3-year vesting plan with 1-year cliff vest.
The total MKR Expenditure will not exceed
This covers the entire
3 years plan for
The Estimated MKR Expenditure is the best guess of how much MKR will be used with the current team configuration.
Reasons why the Actual MKR Expenditure could rise closer to the MKR Expenditure Cap:
- A raise for a member of the team
- New hires
- Repricing (and resetting) the program, in the case of bear market
Price floor: -30%. If any Contributor chose to reprice their program, they could do it at a maximum of -30% from the set MKR price.
For the permanent team, assuming the team configuration remains the same as today, this would result in the vesting schedule below.
|Vesting Date||MKR Amount|
|31 Oct 2021||0 MKR|
|30 Apr 2022||189.86 MKR|
|31 Oct 2022||94.93 MKR|
|30 Apr 2023||94.93 MKR|
|31 Oct 2023||94.93 MKR|
|30 Apr 2024||94.93 MKR|
This covers the total vesting schedule of
3 years for the current
On average, this yields
52.74 MKR per FTE per year.
Any changes to these amounts will have to be reported and reviewed.
|MKR/USD lock-in Price (New)||Trailing 6 month average|
|MKR/USD lock-in Price (OG)||MKR = $689,15 (07/08/20 - 03/02/21)|
|MKR Price Floor||-30% ($482)|
|Vesting Period||3 years|
|Cliff Vest||12 months|
|Vesting Schedule||After cliff has expired, the Biannual MKR amount vests every 6 months|
This payment implementation makes no assumptions about the origin of the MKR. It can either be moved from the protocol’s treasury, newly minted, or obtained from another source.
Once DssVest or another payment flow has been adopted by the community, SES may propose to update its payment flow to comply with the standardized flow. That is assuming that the standardized flow is compatible with the vesting schedule, and that the risk is deemed acceptable by the team.