MakerDAO Weekly Governance and Risk, 29 Nov 2021

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From YouTube: Governance and Risk | Ep. 169

Description

Agenda:
@GovAlpha-Core-Unit : Hosting, Introduction, Agenda.
@gov-comms-core-unit : Slides

Governance Round-Up:
@prose11 Poll + Executive Status
@blimpa - MIPs Update
@Artem_Gordon Forum at a Glance

Selected Updates / Discussions:
- CU Operations
- Budgeting, Accounting, & Reporting
- Communication Standards
- Cross-functional Initiative Coordination

Adding support for the 1bps GUNI pool
- Why do we need to add it?
- Should we add it?
- What are the repercussions for adding it, do we mess with the 5bps pool?
- Agility with LP Token collateral

Full written:
https://forum.makerdao.com/t/agenda-discussion-scientific-governance-and-risk-168-thursday-november-18-17-00-utc/11677

A

Hello, everyone and welcome to the make a dao scientific governance nervous meeting number 169.

A

uh My name is lanka, wisdom, I'm one of the government facilitators at maker dao and I'm during this meeting today.

A

So as usual, we've got a agenda to get through. I'm gonna have a bit of a governance. Roundup see what's happened in the last week or so.

A

um We've got then some discussions and I think today we're gonna talk about um cu operations um and about the um gelato uni v3 usdc.

A

um So just general also the call um we kind of like to hear from people. So please do speak up. I'm trying to speak over everyone over anyone. Obviously, but yeah we'd like to hear from you so.

A

Yeah without maybe we can.

B

A

Yes, you can use the reaction store to raise your hand to talk as well. Okay, cool so update some votes over the last week.

A

Cool, so we had four weekly polls um got last week. um The first was increasing the ave direct deposit module um maximum debt ceiling by 50 million from 50 million two hundred million uh this past, uh adding a uh gusd psm fixability module. um This was so fast, uh adding a wbdc c volt type um so similar to ec with a higher collateralization ratio, but a lower stability fee which also passed uh and increasing the system surplus buffer.

A

um So this was a ranked poll and the winning option was to increase the surplus buffer to 90 million at a rate of 1 million per week. So we ensure that we can still do some burns at the same time or hopefully anyway, um we also finished, I believe eight stratification falls.

A

um So we're gonna see some more details from pablo in the mips section, so we're gonna start in a little bit and we also have two green light: poles still open um for sp, frogi, solid block and monitors all right. Let's move on cool, so executive proposals, uh last week's executive passed and executed.

A

They said a bunch of stuff in um wbtcb. um Some stability changes on wpc equivalation, limit changes, um covenants with you on drop changes, um off-putted, some collaterals, um we'll have another executive vote tomorrow.

A

uh This will include the results of the polls that passed this week. um So that's wptc, um psmg, osd, a um service buffer surplus buffer uh changes, um our d3m changes, and it also includes the core units budget distributions for our new core units.

A

All right, let's go.

A

Cool, so that brings us to maps popular hey, hey.

C

Deb, hello, everyone pablo here with meeps update, so the ratification on pulse closed on monday and all the eight proposals passed and we're going to take a quick look at the vote outcome.

C

So we are welcoming three new core units: legal, fixed rate, immune file, security and the sidestream auction services.

C

We've also had four new budgets that were accepted for content, production, governance, communications and real world finance, including an mkr compensation plan for uh these core units.

C

And uh finally, we had a meep six template amendment, uh which also passed so um I'd like to take a look at the stuff in rfc. Now can we? Yes, please yeah, so uh it's pretty much the same old, same old, except for one new addition highlighted in white and spf to make a malloc based spvs, which would make it possible to create legal entity dials, also known as laos designed to hold assets similar to how a spb functions often.

C

Otherwise we have a mip 57 real world assets, committee, mip, 60, intangible asset assignment and mid-61, currently being trialled.

C

A partial uh coordinate, onboarding proposal for a fixed rate solution by pedwise and the facilitator, awarding and onboarding maps for real-world finance. uh We also have some uncoming upcoming proposals in case that wasn't enough. So three new communities are currently being incubated by ses where maker talent and chaos labs, both of which are probably making their debut on the forum on december, 8th and tech, ops, so maker talent will focus on recruiting talent for the maker protocol, targeted through innovative social recruiting practices and offering an amazing candidate experience in the world and chaos.

C

Labs will focus on securing the protocol through robust agent and scenario based simulations, take opposites. Tech, ops, also seth, is working on an spf bounty for developing an effective framework for soliciting, disseminating and acting on legal advice, and I think that's pretty much it. The material there's been so uh bug fixing on the mips portal, but it's not very interesting. So that's all from me. Thank you.

A

Thank you very much uh and yeah. Let's uh move on um forum general updates. I believe this is from autumn.

D

Yep just uh about to paste the link really quick.

D

All right here we go all right, welcome guys, the forum at a glance, a weekly review of what's happened on the forums this week for the week of november 18 to 25th and there's been a little bit less traffic lately as the holidays roll in, but things are still happening. So we'll begin with this week's top announcements yeah that mike then how's the mic guys not a tin can anymore nice. Okay.

D

So let's begin with this week's top announcements, just in case steps in as a recognized delegate and presents his delegate platform to help push profitability burned, communication and protocol growth check out the meet your delegate episode, 7 on youtube.

D

Next, up with recent increase in wbtca depth, exposure and the addition of the wbtcb vault exposure is likely to increase the risk team believes we should play things safely and propose a set of risk parameters for for the wbtc vault.

D

Next nadia published an update on the nexo institutional vault, which already minted its 1.5 billion debt ceiling, using only the if a vault. This pushed risk real world finance protocol engineering and growth teams to work on the second version of the nexo institutional vault proposal, which they will share very soon.

D

Moving on to the top three discussions, the recent discrepancy with votes and outcomes on a signal request was pushed for internal discussion and in response, gov alpha presents suggestions on improving clarity regarding signal, request outcomes and ask for further discussion and feedback by the community.

D

Next up, the direct deposit module has hit its current debt ceiling of 50 million protocol engineering and risk teams are proposing to increase the d3m debt ceiling to 100 million. They also propose to keep the gap at 25 million and the apr target borrow rate bar at 3.9 percent.

D

And finally, if denver is coming and several wonderful people are already helping us prepare content production posted the current situation with funding and planning which includes a kickoff party and our own side event. Let contact content production know if anyone's interested in sponsoring bounties, offering swag and engaging with attendees and other people.

D

Now moving into our signal requests, bourbon asked the community to burn half of mkr in the treasury and use the remainder to vest core units.

D

Next up, there is no clear indication about what should be the source of mkr used for future expenses. uh Maker breaker presents two options: one use the mkr from the maker dial treasury or two new mkr, using the pause proxy and for the next signal request.

D

Original dss vest stream for govcoms was configured incorrectly, resulting in an unclaimed 39 300 die. The team believed that we could slide through the four month stream period. However, legal services and additional expenses recently arose which pushed david to formally ask the community whether they support this one-off governance, request.

D

Next up, cassandra proposes to onboard a g-uni die usdc with a 0.01 percent fitier as a maker collateral type to help stay, competitive, cassandra provides proposed, tick ranges and asks the community whether they want to onboard a g-unidai, usdc, 0.01 pool.

D

Next with gas, and if prices continuing to go up, our dust limits, offer less protection against losses and in response mona supply proposes whether we should increase dust limits for all volt types and then moving on to our final signal request.

D

The matic vault is unprofitable unless it will be able to generate around 30 million die. So nick kunkel formally asked the community whether governance should off-board the matic token, as recently done with knc compound and others.

D

That's it for more information uh check out forum at a glance in the post. That includes a three-point summary evaluations, reports, ongoing initiatives, help wanted and more announcements and discussions. Thank you.

E

Yeah- and I also just want to throw in uh one more thing- uh we we actually are going to be adding a segment for reports for the for this for these presentations uh next week, but I want to make a special mention of the ppg report that was actually released uh just I think it was today or yesterday. uh So please take a look at that. That's probably uh the most pertinent sort of like current report out right now, so yeah.

A

All right, uh yeah thanks thanks, awesome, thanks david all right, so that brings us to our first uh discussion topic of cour unit operations. um I believe ses wanted to maybe introduce this.

A

Is that the case so.

E

Yeah, I believe wowder should be on the call or maybe haunt. I know that they added some slides here.

C

I mean I can, I can speak a bit about it, but uh I hear about her.

A

I don't think it's yeah. I.

C

Want to see something else before um I I want to highlight the the reports that was done by by luca as part of the one of the grants regarding real world assets and financing, so so yeah.

C

There was a call yesterday hosted by retro, so if anyone's interested in seeing different possibilities of scaling maker into the real world finance, please check it out.

C

Regarding the coordinate operations, I have not done the slides, so I'm not entirely sure what uh what I would communicate here, but uh there are different things that we wanted to highlight. uh We've been doing it ourselves as we as we often do in what we call this dog food project where we try things for ourselves and then we suggest things that have been working and- and we improve on things that have not um and yeah budgeting accounting and reporting is some sorry.

A

Doesn't say maybe we could maybe we could start with the other discussion topic if water is is running late or whatever.

C

Okay, I I don't mind but yeah sure.

A

Okay, let's maybe do that move on to.

A

Cool, thank you david um next, one we'll see if we're talking about a little bit.

A

All right so yeah um speaking about the uh I guess, gelato uni, uh wsdc pool, um maybe sam, is the best person to introduce us if you're wearing some.

F

Sure um so, like uh ari from gelato has introduced and that's cassandra by the way um he's introduced the one bipps pool for the giuni token dye usdc. So this is uh in response to uniswap. Adding this. uh This tier, um so kind of an ongoing development over the past week is just after we raised the debt ceiling to 500 million for the five bit spool uh swap just went and added uh one bips pull, which has been sucking all the volume uh out of the five bits pool.

F

So we were a little uncertain exactly where it would land um so we've been watching it this past week, but it seems pretty clear now uh all the volume is going to go to the one bips pool, even with seven million locked in there alone. It's already enough to cover like the majority of the trades, it seems so um the unit swap router is likely just gonna put most stuff through there, and so it makes sense to onboard this and uh support it.

F

So I think uh right now, with seven million it's pretty good but uh like I could see the volume going up quite significantly if we sort of uh improve the liquidity with uh leverage. The same way, we did the five bid tool which should boost the fees and stuff like that, so um we'll see where it lands, but uh it makes sense to onboard this. I think um yeah, maybe just I don't know discussion about this. Does anybody have concerns or questions.

E

um Yeah, I have kind of like a couple of thoughts about this, so I know that uh with the launch of the d3m- and this is related- I promise with the launch of the d3m uh a lot of the thinking about. How do we generate dive from you know less scalable collaterals like we could do it as a proxy through the d3m, uh by providing dye liquidity to other platforms like ave compound whatever my question for this specific thing: g uni.

E

Is there a possible d3m, g-uni sort of integration, or is it limited by the fact that it has to be like a very, very specific, like uni type position and like uh yeah? Basically, what are ways for us to be more efficient in handling these kinds of collaterals because they seem to take a long time to set up and then all of a sudden you know one change, can throw a whole wrench in the work so yeah just thinking about it from a scale perspective and from like what other tools do. We have uh perspective.

F

Yeah, uh that makes sense, so uh I guess what you're referring to is sort of like we just added this one and then all of a sudden, like we're kind of aiming at a moving target here where, um like things, change and we have to you- know, we just waste all this time with the five bibs full. Now we have to go to a one dip. So first I'll say the majority of the work was sort of evaluating the token itself.

F

Now that we have it sort of uh evaluated like onboarding the one bits we can do like in a week or two like it won't take long, and it's like a minimal effort on the uh like all the core units, basically to get this on board. So we kind of get these things for free now, more, not quite free, but pretty close. So there's that, um with regards to d3m uh it's an interesting point, I mean, uh like I think afe is actually in the process of onboarding g-uni as well into their amm market.

F

So we could potentially point another d3m at uh their amm market and have them sort of uh more rapidly iterate. With these uh g-uni tokens. That's a possibility.

F

um The nice part again, we built the first d3m for ave and we sort of get subsequent ones for ave, specifically uh for free, um so there's definitely a trade out there, and you know uh the community can decide which way you know. If, uh if we're having to switch too often yeah, it may make more sense to delegate to another like protocol to do that.

E

Yeah cool, it's good to hear that it's like a low lift after that initial sort of set of work, so that that's really positive to hear but yeah, I'm thinking like even from an oracle cost perspective. Wait is that is there like an oracle cost for this particular pool? Because I know it's just you know: um usdc dies so.

F

Yeah, so all uh oracle's, uh it's not about the oracle itself, it's about the osm, mostly so they have to be poked uh once an hour uh regardless of price change. So um one thing that we're doing right now for these specifically because they actually are the most expensive, the g uni, to evaluate the osm price. So we noticed this.

F

We also noticed that, since this is a stable, stable pair, uh the price like barely changes, so we can like we're planning to lower this to uh once per 24 hours and we could probably even go lower like it's just so safe. So, like you know, infrequently changing, uh there's no point in wasting this amount on gas, so I think definitely we should be considering the oracle costs, but I think like we could probably get this to nearly negligible levels if we need to so I don't think it's a big deal for the oracles.

E

G

Is it possible to use the d3m technology and use uni in the background, meaning that when you allocate to a d3mg uni it creates the gelato pool and add to it or is it too complicated.

F

uh So this is basically uh the ave amm market, there's more stuff that needs to happen, but like yeah, pointing another d3m at the amm market is basically what you would do for that.

G

And I mean really taking the d3m, maybe it's not a good name, but instead of using rv in the background, you will use the gelato in the background.

G

So we get all the fees because it's the problem is that the market rates on the g uni is moving and if you just dump 100 million of alpha billion there, we get all the fees.

F

Oh sorry, I was misunderstanding. What you guys were saying: yeah. Okay, I get it so you just directly put the uh money into uh the g. Uni token yep definitely a possibility. So the reason I want like I originally opted for going with this g uni route uh with with the users. Depositing is just because it was a minimal amount of work for us to onboard this. The d3m uh requires like it's, not some generic thing like we have to build customize it for every single protocol we're integrating with.

F

So this is a lot more engineering time. So I I sort of was opting more for you know we can just use a standard gem join, it's all very, like bare bones uh maker stuff uh to onboard these uni as like a regular token. So that was the thinking for that. You know like there. We have much like sort of a bigger bang for our bucks sort of uh if you will uh low hanging fruit here for the pe team, so I didn't want to like occupy too many engineering hours with something.

F

That's you know it's good, but it's not like the highest priority. In my opinion,.

G

E

So, what's the status of the current pool and where is it going to go? I know that ppg just recently posted their recommendation to lower the the actual stability fee from uh half a percent to 0.1 uh percent.

E

uh So I'm curious kind of where you see that going are those vault users kind of like well taken care of by making maker governance so to speak and and yeah kind of what's the whole process for actually doing this sort of, like replacement.

F

uh Yeah, so we're kind of just still watching the fees uh in the past like 48 hours, it's really really dried up so, like I think I was looking at the 24 hour fees. It's like 133 dollars like it's. It's it's it's gone. I think at this point, unless it rebounds for some reason, um yeah we may even have to go down to zero percent or even just shut it down yeah, they should unwind themselves. I would think it's unfortunate in the timing.

F

We just sort of have everybody wind it up just to unwind it, but you know it's the nature of the space.

A

All right thanks simon thanks, uh so these are ask questions.

A

And this is any sort of more questions about this we can maybe move on. I know it's not like the sort of there's not that much to discuss with this. I don't think.

A

All right, let's uh maybe sort of middle our way through this uh one. You do you want to give this a go.

E

Also, alternatively, we have the prompts, so if we don't get louder to go through his slides, uh I'm happy to just pull up those prompts and we could talk through kind of the three pieces that I structured out.

A

I think one's gone now as well see.

E

All right cool, let me go to the prom and I could like start us off.

E

All right, so uh one part of this whole topic of uh core unit operations. um First of all, I want to say that you know it's been less than a year since the first core unit has actually been ratified.

E

So that's pretty freaking crazy, considering the fact that, as of today, I believe we have 18, ratified and active core units and many of them in becoming core units. You know the facilitator kind of. Has this responsibility to facilitate the mandate of each core unit uh and a big part of the culture and kind of like the expectation of core units is to have a sufficient level of transparency into the financing of the core units.

E

The spend kind of the uh the budgeting, the reporting all of that stuff um and facilitators kind of by nature haven't been. You know, set up as accountants themselves um and so a lot of core units, at least that our team is talking to and also that scs is talking to him. That ace is talking to uh are really struggling with the uh accounting and reporting portion, and so uh when this happens, it's obviously a lot harder.

E

For you know, the real world finance team uh guys like ace to really report on the refinancing in a timely manner and in an accurate manner um and so kind of one big piece of the operational puzzle for core units is getting the budgeting, accounting and reporting like uh right, efficient, streamlined and kind of synced between all of us uh and, of course like when each facilitator needs to be individually trained to do this kind of transparency, accounting.

E

uh It's it's really hard to scale and it's and it's slow and people. You know it it's kind of hard, and so there has been conversations uh in the chats um and in various calls about uh like giving an overarching, accounting and real world finance core unit sort of like this authority or mandate to help uh facilitators with this transparency, accounting uh and that's kind of like the current state of things.

E

uh The first prompt that I put up is what have core unit experiences been like, and I could speak from govcom's perspective, so we're a team of three people. uh We were ratified back in august and, uh and it took about two months before we could set up our uh our you know, official sort of uh like partnership with accountable and all of our like contracts were actually only assigned two months later in all in october, and by the time we actually got that first round of full accounting data.

E

uh You know it was like a mix between our my own personal data for that two months and then you know accountable and then syncing all that and then making it sort of like presentable in a public uh format. So that itself was like an enormous sort of thing to work through, and you know in the middle of all that a mistake or two might might have been made.

E

You know previous actuals may have been revised uh even after, like ace reported them, you know perhaps back in october, for example, so and obviously like it's hard uh to deal with that when you know it is like small amounts for teams like uh like ours right like we're, we have half a million dollar your budget compared to some other teams that are way bigger with way bigger budgets, um and so, like.

E

Our experience, has really been like we're trying our best and uh we're really thankful for, like the templates that ses team has set up and we're really thankful for guys like ace that really follow up and are proactive in pushing us to get those numbers um and so yeah.

E

That's that's kind of the highest level like experience share that I could give you guys and- uh and I am actually very much in support of an overarching uh accounting, core unit or finance core unit that could help coordinates like like ours, uh and so I'm totally curious to hear from other facilitators that might be on this call what your experiences have been like um and whether in general like um what. How do you see the budgeting, accounting and reporting function across core units?

E

How should it be, should it be this transparent, uh et cetera, et cetera, so I'll open it up I'll, stop ranting.

B

E

Thanks for the intro.

B

David, um I can sorry along to jump over the top of you.

B

I'll uh yeah, so I guess like in terms of experiences that you have on there so yeah I mean I uh I have from the get-go used a spreadsheet that gives me a line-by-line uh transaction for everything that goes out of the multi-sig, so very transparent. I then transitioned to using what the scs group started with they created a spreadsheet that basically does a tracking, and it has some mechanisms in place to ensure that there are checks so that you know what's forecast and basically helps to do forward-looking budgeting.

B

So I'm using that and the experiences with that I find it was pretty similar to the spreadsheet I started with it. Lets me track. You know, individuals, of course. Individuals in some cases are individuals or llcs. They also have auditing companies like chain security, tooling setups, like satora other third parties like block science and then, of course, the llc's of individuals that are set up, and you know globally for pe, um so that all works really well. um I've got it down pretty much autumn.

B

Well, not automated, but it's a it's a known monthly process um that that I go through um having the checks doing uh working with other multisig owners to to get all those um those processing processes uh sorted and then yeah, like you said, I work with as well show him the number uh and then you know over the last couple of months, we've been getting better at forecasting some of the challenges there have been that with the third parties, we have some um slightly uh larger expenses when it comes to audits and those are not a month by month uh process, so sometimes they're larger, sometimes they're lower.

B

Based on how we split the auditing and the contracts that we have coming through, um not a problem. It just sort of skews the numbers, sometimes so. There's my plan to make that a bit more transparent is to do a.

C

B

Of uh of the budget so far and break that down into you know, why are the numbers where they are and give a bit more explanation, and also, you know, provide that uh on chain uh verification. If people have concerns about it, um but yeah, that's all been going really. Well, I think uh pain points. uh Sometimes uh it takes a little bit of time and effort to get the invoices from people on one of our third parties we're a couple of months behind.

B

So I'm going to have a big outflow in the next month to cover that and then because of the way we work, we also need to provide the next quarter or, in some cases, six months of payments upfront to support that access to software over a long period of time, and that can be a big number.

B

My budget reflects that. So it's not a problem from an accounting point of view. It's just sort of goes to show that you know up and down. um You know outflow uh as needed, which is cool and yeah. You've got a question david.

E

Yeah, I'm actually super curious about that, because um you know, like many of our core units are set up to receive our budgets through a module called dss fest, uh and this kind of gives us a linear uh distribution of a budget over time uh and with stuff. Like you know, upfront six-month software expenses, how do you structure that into the dss best stream? Do you just yeah? I'm curious, like I would imagine, like a one-time payment or like yeah, like I'm curious how you navigate that problem, because that's something that we're also struggling with.

B

So we were lucky in the sense that um our third party uh didn't provide the invoice up front. um If, if we needed to fund that up front and be able to put down a deposit, essentially on on that work, going forward yeah, we would have had to have those funds uh from the get-go, but uh because uh the way we've uh we've had some leeway and I accounted for that in the initial budget. So it gave me some space to handle it.

B

It did mean that for a period of time, we've had some surplus in the the core budget and we put some of that into the emergency um multi-fig, because it's higher security, it's not the one that we have access to monthly. So it's been parked there. But of course that will be reflected in the the half year or annual audit that we do of all the funds that we have what surplus and what has to go back into the surplus buffer or get reallocated if it's needed elsewhere, um so so yeah.

B

The the solution there, I think using the spreadsheet from scs, has been quite helpful. uh It also uh works on two levels, so internally, within the core unit, we uh have the line-by-line reference. There's a lot of personal information there. So that's not shared broadly or beyond the core unit itself.

B

Then it abstracts those payments into groups so we're able to then put forward to the community. You know here are the groups, and I want to go in more detail on this, which will take a little bit of time, because I want to actually split what are our l2 costs? What are our core protocol costs? um And you know, where are we spending uh costs specifically on certain contractors so that we can have a more transparent discussion about you know where costs are and why they are the way they are so um so yeah?

B

I think I'll wrap it up there in terms of resources. You had here the spreadsheet and also want to do a review so that people can look at it, and I think that will help complement the work that as uh and those guys have been doing so yeah. Any questions uh paper feel free to jump in.

H

Yeah I mean I don't have a question or comment on on any particular core unit, but I I do think it would probably be helpful if we just kind of wrapped our heads around our core units supposed to be contractors of the dow or are they part of the dow themselves right?

H

Because if they're just contractors, it's the money money in mkr that goes out the door that matters, whereas if they are part of the dow, like employees or some kind of employee-like relationship, then we really do need to dig into like what gets spent on what a little more at least have the the um the right for for our finance folks to ask for more line-by-line stuff. But if you know probably the the easier approach from the dow's perspective is that all these core units are contractors.

H

And it's really just are they performing and are we getting our money's worth? And then we don't have to mess around with all the internal financial.

E

I think a with that is, uh if you treat it that way, then who's checking that they're performing well and that the accounting is like um has integrity right like uh the way that I see it is you know like even within our team. I can only really use my team as an example, uh but uh like we I'm on I'm on a salary right. uh Our other two full-time team members are on a salary. I don't know is that us working for a salary under this entity, the specific entity for our team?

E

Yes, are we salaried employees of the dow?

E

I have no idea, but our team also has 11 or 8 8 to 11 they're on rock different uh part-time contributors who all build, like you know, sub 1 000 a month in billables, you know and they are not on contract they're at will. You know contractors right so they're at will employees or you know what are they? Are they contractors if they haven't signed a contract? I don't know, but uh the point is uh within each core unit, entity uh or structure. I think, there's you know salary.

E

There should be room for salaried and contributors, but whether or not like the dao delegates and mkr holders want real transparency and proof of integrity, like that's, going to be a matter of either creating oversight. Core units like either specifically for accounting, specifically for opsec, specifically for like other functions, or it's going to be a matter of having requirements for each core unit to handle it in-house themselves to some degree but uh but yeah.

E

I think it's the question that you're asking paper, I think, is a a matter of how much granular transparency and integrity checking. Do you want to set up and how, um but am I kind of hitting the mark? There.

H

Kind of so I mean I think first, let me just say I think we'll need an accounting cu, no matter what we decide on something like this, but I mean I guess what I'm getting is um you know you know when someone comes to you know any cu comes to us and provides a a budget request. You know, do I or anyone else in the dow you know. Do we have any business saying well? Why are you spending? You know 30 000, on travel or you know 40 000 on hardware.

H

You know what you know picking out individual stuff like that and saying. Why is this so high?

H

And if these are contractors providing a service that we renew by giving them more money every quarter, then it really doesn't matter how they spend it as long as they deliver the results that we feel warrant, giving them more money, the next quarter, whereas I mean I guess my question is: how centralized do we want the oversight of the budget to be- and I guess this is unusual for me- to be on this side of the spectrum, but I kind of feel like less bandwidth for the dow and um probably less liability for both parties is for everybody.

H

To just be, I mean these are all legal entities for the most part that are providing services to the dow and they themselves have employees, but that doesn't yeah. I mean, I guess that's. I think we should clarify this because it if people waste money but still deliver on what their bottom line is worth. That's not our business. If they're contractors right.

E

But isn't it like? Don't you, as the delegates want core units to have efficient, spend and maybe some sort of function to like call people out on stuff? Because although it's micromanaging to some level like I, I don't think it's wrong to have some sort of function for efficiency and sorry for going out of turn. I saw nadia's hand up, but I just really wanted like to kind of bounce back off that or ping pong off. That.

I

Well, uh going to paper's question, I think, from a legal perspective. We are all contractors, because if we want employees we should we have to incorporate companies in each country where the employees are so from a legal perspective. We are contractors, uh at least in, and that's that's. That was uh like what I have to do with my career and we are incorporated.

I

uh We have a legal entity, uh but I can have employees, because if I, if I wanted to do that, I I will have to have companies all over the world to hire these people, and that makes no sense uh in for me uh that on one side and and how I manage the expenses, I think it's it's difficult. I agree with with all of you. I think all facilitators like it's it's insane uh and for me that I have like uh 12 people in my car unit.

I

It's it's it's even harder and also like my payments, go to different partners and.

I

For for campaigns for creating a content to organize events, so it's sometimes it's insane. um So I I hired an accountant, and this accountant is helping me with that. What I want, I mean, of course I have to like. I have to every time I do a transaction.

I

I have to fill everything in a spreadsheet, but that helps me to keep me organized and then I can present that information in the format I I want, but what I think it's missing is, I don't know like. I think we we need like uh uh like uh to to have an agreement on what is the community or the medical horde, the holders expecting from the coordinates in in regarding how we show our expenses, because I do it in one way and I think every korean need is doing it in their own way.

I

I I like this initiative of ace and the real world finance korean aid about like asking our expenses and they are creating like an unified vision of our expenses. I like that, a lot, but, of course, and and that that it that I want to know what uh the community thinks about this and how they, how you want to uh to like, have access to our expenses. What I'm doing uh for now is um every time I close a month.

I

I'm posting uh in the growth updates, the p l and I'm planning to do at the end of the year closing of the year and uh like the remaining budget that I have return it to the to the dao but like we should have like at least an uh an agreement between all the car units and do the same.

A

G

Yeah, so we've discussed uh a lot. We uh with mark aes on that, and there is two um there's a lot of problems.

G

If we want to go too much into details, I have record unit will spend a lot of time getting all the invices and we can check if you will buy a pen and if the price of the pen was dry or too low- and I don't know a lot of that in the past- and it's not that useful and I kind of agree with paper that you are paying someone to do something and what matters. If do you get the result and even getting?

G

That is not easy, because we have uh almost 20 car units and I'm quite sure we don't know much. If we take every individual in this call, we don't know much what every people are doing, so we are not tracking any way what they are doing, but that's all- and I thought I think it should be fairly simple and in my coin it is quite tv.

G

We are seven some part times and at the end of the day, every once in an invoice or not having an invoice adjusting an amount, a proof if they spend something else than what they worked on, and I will reimburse everything so it's seven payments per month. It's not that much and I, if I need to pay for something I will use my bank account for my company to pay for it.

G

For what- and I reimburse myself at the end, because I consider everyone in freelance, but you can analyze all the expenses in detail or you can just analyze what was already spent and what is over budgeting and give a more precise view of what we expense.

G

As uh as a dow, for instance, there was two million uh up front to typhonation- that's not recurring, so that should be tell to the community that well, we did have a lot of expenses this month, but it will not continue, and at some point uh mark did a great uh analysis to show that. Well, the cost run rate is half of what we have currently it's.

G

It feels like we are spending a lot, but we are spending only half of that and that's not so expensive to to have this information and that's super helpful and though the part that we are trying to achieve. But it's super difficult as well is to know how much we are spending on each strategic initiatives of mega dog so, for instance, how much so fancy stuff that redwater set is the strategic objective of mikko dao this year.

G

The question at the end of the year is how much of the world budget of nicodell did. We spent afterwards and I mean for all coins.

G

If it's only one percent, I mean it's a joke: it's not a strategic initiative. It's just a wish. If we spend 10 percent well, okay, that's strategic initiative, so that shows and allow you to to see if that's interesting or not or if it's really strategic for the dow or not. Obviously, it's not that easy, because you need to cut to ask pe how much dive they spent on reward set, and that is quite complex. So it's not super easy, but go on david.

E

I was just going to disagree with you on one point. I I agree with a lot of what you said, but I just want to say that I don't think the cost of an initiative is necessarily tied to its impact. I think you could have very uh high cost low impact initiatives and I think you could have very low cost high impact initiatives.

E

So that's the only thing I disagree with.

A

All right thanks david thanks, uh what's up derek.

B

Go ahead: oh it's just gonna pick um pick up on uh the comment in the sidebar uh between. I think it was yourself and uh paper referring to core units um and whether they are or are not for profit entities. I don't think they are because, at least in my case, everything will have to be or is declared as either uh being put forward to for a to, I guess, a cost center or an an individual, a third party, uh an auditor, etc or returned.

B

um We don't have strict rules in place, which is maybe what paper is getting to uh about that returning? You know we have these uh loose agreements uh like what nadia said. You know we will do and an end of year audit. We will return the funds that this isn't strictly specified anywhere. Maybe that's part of the problem we're getting at. I think we we're all um working towards that, um but so yeah, I don't think core units are for-profit entities at the end of the year.

B

We do not expect to have a surplus of any sort. If we do we put that into the emergency budget, which will require a discussion and uh um yeah. So I agree with paper there you're having expectations um so yeah I'll leave it at that. But I think you're onto something there that having formalized agreements and expectations is, is key.

E

I do want to be cognizant of time and there are a couple other props, if you guys, are curious but happy to if long is comfortable, to keep plugging plugging.

A

Away, uh we can move on towards one of the other problems. If you want that's fine.

E

uh I'm actually gonna skip prompt two, because uh I failed to realize that thomas flitter, who was actually leading an information output audit that our team was doing, is not here. So I wanted him to speak a little bit to these props. So I'm happy to table this for another time, but the gist of it is even outside of like budgeting accounting reporting, uh there's also um operationally kind of a level of communication. That's expected uh for stakeholders to be able to access.

E

You know your your team in a certain level and see kind of like what your team is doing and understand the story of your team, the function and the progress but yeah so I'll skip over this, and the third prompt that I had was uh about cross-functional initiative coordination.

E

So you know we have 18 or something core units and uh and we're all working on a broad range of initiatives and sub initiatives and sub sub initiatives, and so we've been over the last year, kind of operationally internally working towards uh greater efficiency. Greater tracking, like we've, seen a number of different tools uh emerge, like you know, the shared holiday sheet, where people can put up their um their. You know their absences uh like their afk or something we also have.

E

uh You know across uh a cross-functional initiative tracker that you know we cover on our mandated actors, calls uh and kind of go through line by line uh and soon uh we're actually also going to be mapping out initiatives and who leads those initiatives who leads the sub-sub initiatives uh and kind of try to document everything so that expectations across the board are clear. uh But of course uh like, like people have mentioned, you know, like the one big concern. Is you know?

E

How are we efficient in our operations um and, I think, getting to be very efficient as a decentralized org with a bunch of these independent core units um is, is really important and so like? That was my little uh just.

E

The report of what it's like from the inside um and- and I guess, like the pain points from my perspective- are- are really just the fact that these tools aren't like to the level that they should be yet but we're early and we're making them so um and then yeah uh so happy to open it to others to also share their perspectives and and ideas too, and also to. I know, there's also stuff happening in the chat, uh perhaps about prompt one so happy to revisit that. But I'll. Let long guide it so.

A

Sure so I mean I think this is something that we're looking at in more detail recently, um it's one of the initiatives that, yes, I think, is pushing just to sort of make the cross-functional coordination more effective um because, like it's kind of worked in the past, um but it does kind of tend to um like exclude people who aren't like explicitly core units or kind of coordinate facilitators right. um So there was some debate on australia to include.

A

Like um you know, the people working on front ends the support maker right into into some of these meetings, um which would potentially be useful, but it's also like yeah. It's just a bit strange in some ways right because it's not they're not actually part of the org, um that's for whatever it is. um So it's kind of I mean this is all sort of something that grows out of the fact that, like like membership of a dao is kind of fuzzy right.

A

um So you know in order to sort of have these cross-functional initiatives be effective. If you need to you know, either make the meetings and sort of um communications like transparent or public, if possible, and but obviously, in some cases, that's like less possible, which makes it harder to make sure that everyone gets the information they need right.

E

Yeah exactly like one one big concern uh that we had inside of the mandated actors meeting like months ago was, you know, hey we have these major initiatives, uh we don't know who's leading them. We don't have like a singular coordination. Call for for many of them. We just kind of have like this one big call per week, where all the all these facilitators gather and kind of try to work through blockers and dependencies and stuff like that, and maybe next steps.

E

But it's really hard to scale when you have 18 teams and like eight different initiatives, and then you know, underneath those eight there's like 64 sub sub initiatives um and so a big part of the challenge, and also that exclusive access thing, because okay mandated actress call like who goes there is, is it just facilitators or is it facilitators, plus key coordinators, product leads, etc?

E

And a part of the work that the comms team has been doing um is to try to work with scs, to work with derek and and, like you know, the different engineering teams to to figure out how to map these initiatives and not just that. But how do you?

E

uh How do you actually as a part of that map, include the relevant stakeholder groups because uh within the coordination, uh the coordination effort or track of any one of these initiatives or sub-initiatives, there are other relevant people right like if it's just your team you're in an echo chamber and if you're not sharing the information about your coordination, calls somewhere publicly or doing proactive outreach to people outside of your in group.

E

You will you're not going to have effective feedback loops you're not going to have effective like uh solution design conversations you're not going to have you know you will increase risk for what you're building you know, you're you're gonna increase the risk that it's not gonna, be the right thing. uh So, in general, operationally, like we wanna open up these initiatives to stakeholders that are relevant to be able to join in these conversations, coordination calls documentation whatever whatever it might be, um but really step one. It has to be kind of like this full-fledged picture.

E

You have to have full um synced up agreement on the map of the initiatives. All the way down. You have to understand who the leads are, and then you also have to kind of play, a continuous game of uh you know or the relevant people, and our team is in the process of creating a stakeholder database and an internal one, and it includes not just core units or and delegates.

E

You know it includes members of media integrators and obviously it's a pretty incomplete database at the moment, but we we also kind of use that database database to map out the stakeholder ecosystem. So who are the actual stakeholders who you know front ends? Okay, you know keepers, auction participants right, uh you know the people actually pushing.

E

uh You know those sets or whatever the new the new software updates uh and, like you know, there's a whole web of stakeholders that are outside of our little core unit and like delegate an mkr voter bubble, uh and so it's really important because that's our business, like our keepers, our guy users, our fault users like there has to be some level of ability for them to come in and see, what's going on and be able to give proactive feedback, uh and so yeah, I'm rambling for a bit so I'll kind of uh kind of uh shut up there and let other people comment or whatever you like.

B

David just to tag on to that. um To give a real example, one thing that you and I have been working on uh with some of the other um uh stakeholders has been the l2 work. So you guys know that now, we've got um sam chris bartek and others in the team npe working on layer, 2 work, but that work has a lot of dependencies with with other potential l2s, not only the starknec group, but not only integrations.

B

uh Not only some of the groups that ses may want to integrate may have. Keepers may have interfaces um so so what we're trying to do is remove this uh or prevent having tried to prevent, having an in-group and out group and really open, like david, said, open this l2 discussion as an example to the broader community and really build up. You know what are the the target releases where we're um trying to target so that growth know? Okay, when can we expect to do um the the marketing work around these initiatives?

B

uh What does it mean for other l2s and the so operationally? The way this is looking? uh We had a meeting. I think that was last week uh where we walked through. Okay, here are the key deliverables. We agree. uh We had people from nadiya's group, um add thoughts and ideas around okay.

B

uh You know fast withdrawals the the dye wormhole mcdo on l2, and you know- that's built up a picture uh essentially a high level roadmap of what we want to deliver, and then we break that roadmap down into its constituent parts and put timelines against it, estimate against it, and that work helps map out um for the broader community, and we want to still, I guess, roll that information up to the mandated actors, but have that more broadly uh known and available to the community, so that yeah, like david, says everyone's in the loop as to what this is delivering.

B

When can we expect it? What are the dependencies? What are the risks? Are we putting money where we should be? Do the objectives line up with what we set out to do initially and um yeah, basically that that this bridge building, uh like will says you know,.

C

B

There and and visible for everyone involved, so that's my little feel um we're working on it. I hope to open that up to the community and I think uh david yeah- we can totally do that coming up so uh over to you guys.

E

Yeah, and also I just I- I really want to echo something that will really remember is saying in the chat, so he said as a collective. We just don't realize that ops risk uh equals reputation. Risk uh is an open in an open organization like ours, and, I think, like a big focus of the culture and kind of like the mind. Share of maker has been on like this financial risk and technical risk aspect, uh but really like.

E

If you look at any business, there's also operational risk, um there's very real operational risk and and the way that we mitigate it is through really good coordination, because when coordination fails, that's when products fail. That's when bottlenecks happen. That's when delays happen. That's when you know six months of work gets thrown out the window, because you didn't talk to the person six months ago and you invested all these resources right, so uh so yeah just just wanted to tack on some yeah my thoughts there.

A

All right thanks david um I'll, be proud to say now. If we answer uh oh, I guess eric did you have something? First, maybe that's yeah.

J

I'm just gonna, I guess in regards to uh communication operational communication. I just wanted to make a quick comment on. I guess collateral off-boarding uh with the recent off-boardings, uh I'm gonna speak personally uh from a real world experience on ave. uh You know I was actually probably about a quarter of the outstanding die was from my ave vaults.

J

I was gone for the weekend. I you know pop on the forums I clicked. You know, search for ave. I don't generally jump into a lot of the um you know, signal forums and that sort of thing, but when I typed ave in the search, nothing came up about off-boarding or anything like that. um Ultimately, you know position was closed or vote happened. Position was closed fairly quickly.

J

With the you know, the ratio ticking up very quickly, um so you know I was liquidated, obviously without a penalty which is great, but at the same time it doesn't really offer a lot of a time for the position change. You know, especially when I was trying to support. um You know an asset that was, you know smaller portion of maker and have been kind of for quite a while since black friday, but at the end of the day uh you know I'm looking now kind of going.

J

It was a six figure loss at this point um that kind of got triggered um sucks. Ultimately, I was throwing up for two days and I was gone on a weekend trip for two days. I was gone for four days and ultimately you know that I know ultimately maker needs to make a decision to have something but four days- and I you know before I leave- I check everything I'm checking my phone defy saver was uh being checked and ultimately, when I talked with nikolaj from devi saver, he said uh you know when that happened.

J

We don't even know what rate's coming up next. So basically all my fail saves failed right there. uh Now, I'm looking at it going okay. What can I do for maker? I then jump on the forum and I'm digging in deeper and even there's just confusion around matic.

J

uh It seems like the operational units, I'm not sure exactly the coordination there, um but you know there's a one vote on matic being off-boarded in along with ave and all those and then all of a sudden there's you know chat within there of how matic is going to um you know, come come up with its promises and that sort of thing and then very shortly after there's another poll um you know by nick, um are we off boarding matic again and I'm sitting here trying to figure out what asset can I get back into a to make my you know losses back here um and I I I don't have any faith honestly in the protocol at this point.

J

If I can step away from four days when I have what I feel is adequate fail safe than I you know, I was on my phone and with an asset like ave, which you guys have d3 and there's you know a lot of um you know, protocol integration and sorry I'm going on here, so I'll kind of cut it here, but ultimately uh the communication there, you know from an outsider.

J

Looking in I'm trying to use the platform I feel like I was an early supporter, you know I was on the call on the black thursday and jumped into a vault shortly after I couldn't get a keeper up in time, but I wanted to help the platform as best I can um now on this column here, sitting going.

J

Oh, I don't even know if I have enough for the dust limits if it gets increased too much and I just got taken out so um from an outsider's perspective, reading the forums and everything from an operational perspective. It is a little confusing and you know disjointed and then especially when the hammer dropped as fast as it did, which I would have discussion points on that. But obviously I don't think this is the time now so anyways. Thank you.

A

Yeah thanks for those comments, eric, um maybe a little off topic, but yeah definitely important. um Does anybody want to to kind of respond to that as well?.

H

I mean, I think we can all agree that this was probably a terrible user experience, no matter how big your vault size is, and it's come up before.

H

I think we are, I mean I think I think we all recognize- that it's not a great situation, particularly when and you're, not the first person to even go to our forums and look around and not know. I ran into somebody.

H

Was it last week or something that had like a uni uh lp that got uh off-boarded and was just wandering around trying various discord channels, and I just happen to see them and talk to them. um So if you have some suggestions about forums or communication venues that are likely to be seen or likelier than whatever we're doing now, I I think we are all ears and it's I think we recognize this as a problem. We need to do better.

E

Sharing in the forum any thoughts you have on what paper suggestion would be pro.

E

All right, I think, we're ready to go to water yeah.

A

B

A

Everything watch I think you're gonna have to sort of just rush through um to highlight some afraid at this stage, but yeah.

K

It's uh it's fine apologies. I unfortunately mixed up uh the the meeting time. So um what I uh prepared and just wanted to go through is the um uh the a little bit of an overview on uh three areas, so transparency, auditing and quality control and then automation of the dao and the way that we've been looking at it at ses. So I thought this uh this. This would be an interesting overview um david if you go to the next slide.

K

The first thing I want to clarify is the the background of this. So um the way that we focused our uh attention at ses because there is so much to do in the dao and so many improvements that we can make that it's difficult to uh to do everything at once.

K

So in the beginning, we focused on basic operations with the incubation program incubating the dux core unit for governance portal, auction services, the unified core unit now for uh security and then basic stuff, like talent, testing, infrastructure and tech hopes, there's even one missing there still, which is the the emergency shutdown infrastructure. So that is actually one that we're still looking to incubate a new core unit. For because this one is currently uh not really well covered, uh the other thing we focused on is dog fooding, best practices.

K

So, within our scopes of removing these barriers between decentralized workforce capital and work, um we looked into business practices, people, legal finance, operations, communications, etc, all very basic and just the first versions of um what can be uh much to prove much improved upon, but um yeah to put the basics in place and then uh now what what the focus is shifting to um are core units coordinates have to do with real-world assets, more a lot more legal education also coming up, but today I want to talk about the transparency, auditing and quality control uh initiatives that have been going on and that will continue to focus on, as well as the what I've called the maker db.

K

What I will talk about at the end, so um if we get to the next slide, a different piece of context I want to give is the way we look at this.

K

How how this is basically happening in a decentralized context, so because there is no centralized leadership that can set policies and immediately like uh basically give orders down the chain of command um the way we're approaching. It is a little bit different. So first, we try to, as I already mentioned, dog food stuff, so lead by example, and then um analyze the the work that is being done by others in the in the maker dial as well in the ecosystem.

K

um Summarize these uh these different uh initiatives and then uh finally push for standardization and formalization.

K

So the important thing is that this is a process that takes a while, and um you know the this is a post from april 23rd um and that one talked about the uh the coordinate budget structure and everything like that and as we will see, uh this is kind of the path that we've been following to um to try and put these best practices in place and then slowly merge it with other coordinates, work and and push for standardization in the long run.

K

uh The result should really be a very good uh solution that has a wide uh wide support from from the dam.

K

So um if we go to the first one to talk about decentralized capital, uh design to our workforce, capital and work, so if we start with uh capital next slide, I've summarized a little bit what we already have in terms of financial transparency.

K

So, of course, we all know our mid-40s trees with the definition of the core unit budgets, both the dye and the mtr bonuses.

K

One of the changes there is that the two are typically split split up these days, so any koreans going through our incubation program or the ones that we're uh advising we um uh we tell them to to use clear budget categories and use the mpr incentive framework and have those in separate mips. So that is documented, and this is of course the starting point for, for all the finance overviews.

K

um We have a coordinate budget spreadsheet. So this is a template for internal use to ensure that the core units can properly forecast, keep track of their estimates and then compare their actuals with um the uh the forecasts that have been made and then also do the budgets that are in their mips.

K

um Then the other piece we've put in place for the core units that have gone through our incubation program and the ones that we've advised is the are the monthly budget statements so uh they're also they're already linked there.

K

I have a few examples in the next slides and these really are the basic transparency tools for uh for budgeting with core units and we're working with um others in the dao, such as uh the great work that aes has been doing from the real finance core unit uh in creating these overviews on a dow level, uh what the actual expenses are versus the budgets.

K

So uh ultimately, these these two efforts bottom up meets the top-down efforts and then you can have like the full breakdown uh from the down level up to the different budget categories uh on the monthly expenses of the core units so uh going through the next slides. um This is the budget spreadsheet that I was talking about, so we um we have a process in place there where there are basically four uh four checkpoints. So the first one is the the budget cap, which is on the mip level.

K

um The second one is a rolling three-month forecast so uh encouraging the core units to make sure that they don't do not uh exceed their budget gap or or would not exceed their budget company expenses that they need to be done um in the coming three months um and then, as the the month comes closer, uh basically zooming into the estimates of which um uh yeah the only unknown. There are things like exchange rates, transfer fees, etc and then ultimately compare those to the actual.

K

So uh to have this, this lightweight but proper budget framework in place um going to do the next slide. We have the the next piece of documentation, transparency reporting, which are the monthly budget statements.

K

So this is an example from one of the uh ducks reports, so that is reporting on this three-month forecast that I just mentioned basically pulled from the spreadsheet and while the spreadsheet, the budget spreadsheet, is an internal tool that is not published.

K

The monthly budget statements are so. This is a summary as a reporting tool to the dao, where, indeed, this three month forecast is um uh yeah, is published and then uh can be compared compared to the budget cap. For example, the actuals of last month are also documented, together with the mtr vesting schedule, as it is currently currently active within core unit, and then there are the monthly transfers that are requested.

K

Now, of course, we try to automate as much as possible on the dial level. We very much welcome the use of the dss vest modules, which automate the the payment of the core units, but um in our setup that I will return to in a later slide, we we actually have an auditing step in between, and the core unit does not immediately or directly receive the budget.

K

They need to um request the monthly transfer from the auditor so that there is a check in place there to make sure that the funds are actually being used for what they're supposed to be used for, um as I mentioned, of course, the the real finance coordinate has done a lot of work on on finance reporting. So if you go to the next slide, all this information can then roll up to a dow wide overview that shows how the the budget cap, how it relates to the forecast, how it relates to the actual expenses.

K

So this is ultimately the full overview we want, um but we yeah we want to have it more like on a on a routine basis that this information is available as real time as possible across as many core units as possible.

K

If we then go to the next part, which is um the actual uh auditing.

K

um Another initiative that we've taken is the coordinated budget transparency map that we have published, and this is very much in the context of what I mentioned uh slowly- moving from uh individual structures and initiatives to a standard that can work for all the core units.

K

So we started by documenting the multisig wallet setup of all the different core units, and um the one depicted here is uh what I mentioned: the the structure that we are recommending for new core units which puts an auditor in between the funds that are received through the dss vest stream from the protocol and which basically has two roles that perform a check on the the monthly budget statements and the the new top-ups of the three-month runway that the core unit is requesting.

K

So um for the sas a s core unit, for example the one that has uh just been ratified and will receive their first payment. The end of this this week. um There are two roles that are signers of the multisig, so currently they're both ses. But the intention is to um yeah to spin that open a separate core unit.

K

But there is an accountant role and an auditor role, and these are actually again multi-sigs that um yeah that allow for this review, the monthly budget statement, um the approval of it and then uh finally, the top-up of the the three-month runway that the core unit is is requesting. So this really is a continuous check on the expenses of the different core units and then the maker protocol is a backup signer um to make sure that yeah.

K

If something happens, that the funds are still recoverable, um the monthly auditing flow itself includes the um yeah, the definition of controls, and if we go to the next slide, we can see the uh work in progress there.

K

So this is an example of the um budget controls that are audited for the ux core unit, um and you see the you know it's a long checklist with very specific checks uh checking whether their expenses are in line with the budget cap that have been uh proposed in the mip, so that everything is according to the agreement with the dow.

K

Is there quarterly forecast below the the budget cap for the quarter? um Are the actuals not exceeding the the forecast that was made last month, or is there not too too big of a difference? And then we are basically color coding. This and.

K

You can get a mechanic where, for example, if the core unit is systematically overspending, that the rolex uh yeah we we put them on on notice, basically so give them a like a warning and then uh the idea is to give them some time to fix it. um But if the deviation is too high or um or it is uh too consistent, then um this would be escalated to to the dow basically and brought to the attention of the community.

K

So this is. um This is a system that we're currently developing for that going to the next slide.

K

We have um a look at the the second part, which is the decentralized work, and there too, and I believe that one was just discussed as I was joining uh by derek. uh So I won't go too much into detail, but uh also making the the planning and the progress reporting of the work uh that is happening in the dao by the different units. Better.

K

We have this evolution of the mandated actors, call, which was historically very lean, planning call for cross-courtroom coordination, for example, with the collateral onboarding prioritization framework that was created in that context, um but in general, can do better in terms of transparency, so people are asking who's working on what what is the roadmap? What are the timelines? Why are things prioritized available, etc, um and then the second thing is that it's, the format is not scalable to more for units in its current format.

K

So, uh of course, we went up from about five core units to uh to more than 20 now. So what's the solution, the solution is to organize around uh major work initiatives, uh break these planning and coordination sessions uh out in various and separate stakeholder alignment meetings, and then um do better facilitation and reporting on these.

K

uh These meetings, so david, if you get to the next slide, then um goes a little bit more in detail, so reorganizing around major work initiatives, for example the growth of business, growth initiatives or business lines, but also the internal work uh has that has to do with the governance and operations um the breakout in the stakeholder alignment meetings. There are the the l2 meetings that I believe derek was talking about when I joined um the cli, the crypto collateral onboarding available. That's collateral.

K

Onboarding are um two new ones that we're currently starting and then the governance and operations would be separate. So these are the four major ones that I'm aware of, but uh of course, as the number of core units growth grows and the the work that is being done grows, then we expect more of these parallel alignment meetings to continue, and this is a fairly scalable structure.

K

I think a very important opportunity there is that we we can start with more systematic facilitation and better reporting on uh on these. These work planning and progress, reporting meetings so, um together with david and derek I've, been uh yeah. We've been listing a number of uh well-known, open meeting formats with uh with templates so that, basically like anyone can when there is a need, anyone can uh pick up one of these templates and run one of these.

K

These meetings, which have like a properly understood, function and purpose, and then they have some summary formats uh that will allow us to report back to governance so, for example, with uh timelines or maps, etc. So david, if you go to the next slide, this is the maybe or was already mentioned, but um this to give an idea.

K

These types of meetings there can be ideation meetings, whether it's a very broad stakeholder participation for um uh basically brainstorming new uh features and items on the roadmap, uh which would then go through a solution, design phase um and then uh get to the point where the solution is clearly defined, and there is a sign off by the different stakeholders. So not just the technical teams, but also, for example, the growth team.

K

Legal teams would have to weigh in there and and yeah any other functions that are active in the dow and that are relevant stakeholders also outside stakeholders. So, for example, owaiso is, of course, a separate company, but could definitely be involved in these uh coordination meetings, where that was more difficult with with the mandated actor calls and then finally, for the execution.

K

Once the solution is known, uh we can break down the work, uh identify the different deliverables by the different coordinates, identify dependencies between them and then have these these regular check-ins, where the progress of the work is, is checked.

K

um Yeah have things like you know, a timeline uh release timeline for uh better coordination, also, uh when we'll have marketing and communications etc to um uh to make it a lot more streamlined and better and with better reporting.

E

Can I jump in with just one quick comment on this as well.

K

Yeah definitely.

E

uh So another part of increasing the visibility of these types of meetings is, uh uh is the management of the public calendars at maker dow.

E

So in the last two months you might have noticed that the one maker, dow public calendar for votes and calls was actually split into two for votes and important dates and then for calls- and I think, a part of the vision for uh for increasing the operational efficiency and the visibility of these types of calls is to put like uh many of these stakeholder alignment meetings or most of them uh on the actual public call calendar and then also uh providing a sort of like function in the description where, if you are an outside stakeholder and you weren't directly invited you could request an invite and um and obviously this doesn't exist.

E

Yet. This is something that we uh that my team is envisioning, that we're working with uh with wowder and and others to do this, uh and this is not like specifically for l2 like this is. This is, can generally scale across different initiatives.

E

That's the main goal uh like we want to provide a framework that really anybody could use uh and that can allow stakeholders to really easily go subscribe to a public calendar and kind of you know: filter control, f, what they're looking for, whether it's a very specific initiative or something like front end, related, etc. So yeah.

K

Yeah yeah, thank you for that david.

A

We're like a half past now so could you try and wrap up? I guess.

K

Yeah, well, you know uh four more slides, so I think we can wrap it up in five minutes. uh If we go to the next one, it's um the uh aspect of quality control.

K

uh So there are, there are different initiatives uh in the works that really involve multiple core units. um Yeah, you see them listed there, so the financial kpis, uh so ace from the real finance coordinates, started a a great threat there and an initiative that will start tracking those. um We have the unified core unit that has been voted in, which will be scoring security practices and work with core units to improve those.

K

We have the communication standards that david is working on, and this is also basically giving a score to different core units, and then there is work in progress around technical practices. Things like you know proper testing, technologies, etc and then also a legal checklist to ensure that the coordinate setups there are are also um in order uh going to the next slide. We um one particular aspect, so we we do need uh more information about the ftes and the koreans.

K

So currently that or full-time equivalence to the number of uh people and and how, if they're, working, full-time or half-time in the core units that is currently a missing piece which is low hanging fruit, because it can easily be remedied, but we need it for different reasons. So um we want to know the roles, the fdes when people are hired and fired or are moving on um and when there are fte adjustments, so that is needed to um yeah.

K

So currently, there's a new budget nip and they're they're needed for multiple reasons, so the mpr incentive bonuses uh they are. They are um set up in a way that they they need to to be tied to the individuals, because it's the individual talent that we want to retain not another service or something an external service.

K

So we need to know who joins band etc. For the vesting schedules to have a minimal check on that uh golf comms is working on the stakeholder registry, which, uh which also needs this kind of information. We have the talent core unit in our incubation program, uh which may reach out for expert interviews and related uh related stuff and then uh within ses.

K

We have our own x-ray project, which is um basically doing ecosystem health monitoring, so the awareness, onboarding and retention of uh currently technical talent, but in the future we'll try and and expand it to other uh professions as well, so going to the next one. We.

K

Talking about actually as you, you can read the report that we already did on best practices on developer attraction and retention, um but now the project is really entering a new phase which is uh more relevant to uh to transparency and uh and review, so um we'll be collecting, make it our ecosystem activity and build a dashboard which has these these metrics that reflect the the health of the developer ecosystem maker there.

K

So, for example, taking from you know existing data sources for about github activity, and things like that which can give us an idea of how many developers are active within maker down and how this this is evolving.

K

We'll also want to do onboarding and exit interviews to understand why people are attracted to make it that way. They decided to join um but equally important, why people decide to to quit or to move on and how we can improve our retention, because, as I've uh repeated so many times, our human capital at maker is really the most important mode that we have so moving to the last slide. This is kind of the latest development in this.

K

uh What I call make it a b or our database, um the the problem that is arising with all these different auditing mechanisms, reporting, transparency, reporting etc- is that it is a lot of information to collect all this manually.

K

So um we are currently talking to a few potential partners, including the talented team that is building the mips portal uh to to automate the data extraction of this, and so we also have internal data data scientists working on this. So um yeah, not everyone may notice, but mipsoutmaker.com already has a quite uh advanced data extraction compiler. So it compiles the information from the mips github repositories and it extracts information such as core units who are the core units uh korean facilitators, and we want to to add to that.

K

So the wallet setups that we have currently manually documented. We want it in the machine, readable format, so that can be extracted and the same for the budget.

K

The tables are there: the data is there, but with a little bit more effort, we can make this machine readable and extract it into a data database representation of the dao, and we want to push that even further with other structured information, so make make the mips a hybrid of human readable, but also machine, readable information and um yeah, which which would lead to a lot more up-to-date information, consistency, etc.

K

We want to include workforce statistics, so the fdes that I was talking about the activity indicators um we want to do you know what currently already happens a little bit with the mips. We want to do the same with the monthly budget statements to capture all that information and make it machine processable same for the audit reports and then ultimately, also the kind of content that is discussed in the the coordination meetings, so add road maps and other output and work indicators to uh to that same database, so that we we really get this.

K

um You know uh full overview of uh everything that's going on in the dow, with uh with a lot of meta information that basically allows us to slice all this up.

K

The benefits, I think, are pretty obvious, so it will reduce the manual work, which means that um all this information will actually be up to date.

K

This can be input for information dashboards that can aggregate and summarize the information, and then we, of course want to use that to to run certain automated audit checks. So, for example, you could check whether the actual expenses on the blockchain are in line with the budget caps that are defined in the budget maps. You could check whether the multi-sigs are set up in the way that is described in the budget maps um yeah et cetera, et cetera, et cetera.

K

So these are the different uh initiatives that are currently going on to improve uh transparency, quality control and um and automation in the dow that was it.

A

All right yeah, thank you for sharing that. Well, sir, um you may have to skip on questions uh given the time unless anyone has something very urgent and relevant. um Otherwise, I'd encourage people to sort of um uh why so you plan to post this in the forum. I guess more links through this anyway,.

K

Yeah, well uh the slides that I've added to this presentation will uh collect them and uh and post them as a separate forum thread.

E

uh Yeah they're also actually posted already people can access these slides live even before the call. So keep that in mind for future uh joiners anybody who's. Here you can check these slides out. They're, usually updated right before the call, but all of this stuff is actually currently available on the gnr agenda forum post.

D

Yeah and the slides will be also on the snippets in about eta five minutes.

A

Yeah, okay, so maybe once we have drawn threads with this on, we can um continue the discussion there.

K

Yeah I'm happy to to come on again next week uh that that, on time to uh take any questions or comments.

A

Yeah, we can maybe swim back to next week.

A

All right, uh thank you. Everyone for joining us today um well, hopefully see you all again soon thanks everyone.