Essentially yes, in practice what happens is @Primoz provides risk premiums for everything, @monet-supply provides competitive analysis for everything, then we go through each asset and discuss changes we think we should make.
In the future I’m hoping that we’ll have more of these groups appear, at which point we’ll share the risk and competitive input but potentially end up with differing proposals based on the individual PPG’s goals. One might focus on risk mitigation exclusively and push for reductions to lower stablecoin exposure for example. Another might favour maximizing protocol income and subsidizing risk.
The goal there would be to have competing proposals be voted on based on the same data such that governance can choose based on their desired direction.
Any turnover would need to be clearly communicated, and part of MIP46 says the following:
It’s more or less impossible to account for all the different ways a person could end up with diverging incentives. In my opinion the best we can do is:
- Make sure that rationale is expressed and related back to PPG objectives, so that holes in logic can be addressed.
- Make sure there is time for debate so that proposals can be questioned.
- Make sure membership is public and there is a reputational component.
- Make sure members have at least considered their conflicts of interest by requiring them to list them.
- Make sure that MKR Holders sign-off on all proposals.
In principle I understand your point and the risks. But we have this risk everywhere, and the best we can do is mitigate it. Core Units could be bribed in the future to pursue outside agendas, MKR Holders could also be bribed to vote in certain directions, and PPG’s could pursue their own interests in their proposals.
The surest way to ensure alignment in a PPG or Core Unit is to force them to stake MKR in order to do the job. At this stage this doesn’t seem feasible to me, it’s too much of a downside / capital requirement. How much MKR is enough to ensure alignment for something like this? 1, 10, 100? Even just 1 MKR is ~$2000, that’s a big capital requirement to provide input into a joint proposal once a month.