►
From YouTube: Governance and Risk | Ep. 182
Description
Agenda
https://forum.makerdao.com/t/governance-and-risk-182-thursday-march-17-17-00-utc/13965
Governance Round-Up
Votes
MIPs
Forum
Initiative Updates
Off-Chain Collateral Management- @Davidutro
February Financials - @strat-fin-core-unit
Resilience Initiative - @wouter @juan
Discussion Topics
Budget Management, Spend, Growth, Accountability, & Cash Flow
What are the practical ways for MakerDAO to improve in these areas?
How can we improve the Core Unit budget proposal process?
Offense vs Defense when it comes to spending.
What are next steps?
Disclaimer
This communication is provided for information purposes only. The views and opinions expressed in this meeting are those of people involved, and do not reflect the official policy or position of MakerDAO or any of its contributors, Core Units, or affiliates. This communication makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, financial or tax advice. You should consult your own advisers as to those matters. References to any digital assets and the use of finance-related terminology are for illustrative purposes only, and do not constitute any recommendation for any action or an offer to provide investment, financial or other advisory services.
A
All
right,
hello,
everyone
and
welcome
this
is
the
182nd
governance
and
risk
meeting
here
at
maker
dow,
my
name
is
peyton.
I
go
by
pros
11
online
and
I'm
one
of
the
governance
facilitators
here,
I'm
joined
by
a
bunch
of
awesome
maker
people,
people
interested
in
the
protocol
and
yeah
we're
here
to
give
a
weekly
update,
discuss
some
of
the
things
that
are
going
on
in
governance,
some
of
the
risks
that
the
protocol
is
facing
and
answer
any
questions
or
concerns
by
the
audience
here
joining
us
today.
A
As
you
might
have
noticed,
the
meeting
is
being
recorded.
So
let's
try
not
to
talk
over
one
another.
If
you
do
have,
questions,
though,
feel
free
to
either
utilize
the
raised
hand
feature
in
zoom,
so
I
know
I
should
call
on
you.
You
can
also
drop
things
in
the
chat
more
than
happy
to
read
them
out
if
you're,
unable
or
otherwise
unwilling
to
hop
on
the
mic.
A
That
should
pretty
much
do
it
for
ground
rules.
We
do
have
a
bit
of
an
agenda
to
get
through
today.
As
usual,
we'll
start
out
with
the
governance.
Roundup
go
over
the
votes,
maker,
improvement
proposals
and
general
goings-on
in
the
form.
Then
we
do
have
a
couple
of
initiative
updates,
including
the
off-chain
collateral
management
february
financials,
and
a
resilience
initiative
that
resilience
initiative
should
be
pretty
closely
related
to
budget
management,
spend
growth
and
all
that
good
stuff.
A
We
have
listed
under
discussions,
so
hopefully
things
will
just
kind
of
flow,
naturally
from
from
one
to
the
other.
After
getting
through
all
that,
if
we
still
have
time
there
will
be
open
discussions.
So
if
there
are
topics
you
don't
see
here
that
you'd
like
to
have
covered
feel
free
to
drop
it
in
the
chat
and
we'll
try
to
work
it
in
during
this
meeting
and,
if
not,
maybe
save
it
for
a
future
day.
A
Awesome,
that's
enough
free,
spiel,
rambling,
let's
get
into
it
so
pretty
light
week.
As
far
as
government
stuff
concerns,
we
did
have
two
unchanged
polls
both
of
them
passed.
The
first
was
the
proposal
to
fund
the
ambassadors
program
pilot
and
the
second
was
the
rapid
amendment
to
mip
64
to
clarify
the
critical
web
bounty
amount.
A
So
both
of
these
have
passed
on
the
ambassadors
program.
We'll
need
a
few
details
in
terms
of
like
where
to
send
the
funds,
so
once
we
get
that
we'll
work
that
into
the
executive
and
on
the
on
the
amendment,
though,
that
should
just
be
taken
care
of
by
our
competitors,
we
do
have
nine
ongoing
ratification
polls.
Those
will
be
covered
in
our
next
segment,
so
pay
attention
there
as
those
are
up
for
vote
for
another
week
and
a
half
excellent
you
might
have
seen
on
the
forum.
A
A
A
B
B
B
So
next
slide
please,
before
the
ratification
pulls,
we
have
a
boat
that
closed
yesterday,
as
peyton
mentioned,
an
amendment
that
entered
the
weekly
cycle
was
approved
with
over
90
90
of
votes
going
for.
Yes,
this
amends
the
mip
64
back
bounty
program,
ramban
run
by
is001
to
clarify
the
amount
to
be
paid
out
for
critical
web
bounties.
B
B
Boating
for
map
41,
c5,
sp5,
facilitator
of
warning
of
the
maker
dow
shop,
along
with
the
whole
core
unit,
is
currently
leading
with
an
o.
Just
as
a
reminder.
This
car
unit
has
no
budget.
Therefore,
only
this
one
proposal
was
deemed
required
to
for
the
entire
car
unit.
At
the
moment
until
the
coordinate
of
boarding
process
is
revised,.
B
B
B
And
the
last
vote,
we
have
the
declaration
of
intent
to
invest
in
short-term
bonds,
mib
13
c3
sp-12,
which
is
current,
which
currently
has
almost
100
rate
of
approval.
All
of
these
ratification
polls
will
run
until
march
28th.
So
if
you
haven't
voted,
please
we'll
and
we
go
to
the
proposals
in
rfc,
which
are
pretty
much
the
same
as
last
week.
B
B
We
also
have
mip
67
that
intends
to
formalize
the
methodology
to
evaluate
structure
financial
transactions
made
under
the
mip-six
application
process.
And
finally,
we
have
the
map-68,
which
is
itself
a
self-contained
collateral,
onboarding
mip
that
will
on
board
and
activate
a
real-world
asset
bolt
backed
by
the
assets
of
a
trust
range
monitor
by
monitoring.
B
Then
we
have
the
core
unit
budgets
for
governance,
communications,
data,
insight,
strategic
happiness
and
protocol
engineering,
which
are
already
being
discussed
on
the
forum.
We
have
two
govcom
budgets,
because
the
first
one
could
be
a
bit
controversial
and
the
core
unit
doesn't
want
to
run
out
of
budget.
B
Then
we
have
amendments
for
amendments.
We
have
the
mib
4c2
sp15
amends
the
core
unit
of
boarding
process.
We
have
then
another
mip,
4
c2,
a
mip
7
event
that
adds
a
description
for
cas
as
a
collateral,
onboarding
domain
team,
and
we
have
the
mip
4c3
amendment
for
mip
62,
the
collateral
sporting
process,
mip
that
describes
how
bulk
users
will
be
notified
of
of
boardings.
B
We
have
a
spf
to
allocate
a
50
000
die
for
the
maker
dao
event
in
amsterdam,
the
onboarding
of
ces
as
one
of
the
collateral
domain
teams,
a
modification
for
the
collateral
application
firm.
That
amends
the
remainder
to
contain
more
relevant
questions
that
allow
car
unit
and
make
her
dao
community
to
be
better
informed
by
applications
that
use
it
and
recently
posted
by
pros.
B
We
have
the
mip
47
c3
sb1,
the
solution
of
content,
production,
multisig
requests
or
proposals
to
remove
content
production
wallet
from
the
recognized
multisig
list,
and
just
as
small
mentioned,
this
one
won't
be
entering
april's
cycle
and
I
think
that's
it
remember.
Ratification
polls
will
run
until
march
28th
and
authors
of
proposals
eligible
for
april
cycle.
Keep
in
mind
that
march
30
is
the
last
day
for
modification.
So
I
think,
that's
all
I'm
sorry,
I'm
a
bit
nervous.
It's
been
a
while
since
I've
been
here.
So
thanks
for
having
me.
A
C
Yeah,
hey
yeah,
the
mips
update,
makes
me
want
to
step
up
of
our
link
updates
on
the
chat,
but
I
am
posting
the
forum
at
a
glance
and
welcome
this
forum.
Recap
is
going
to
cover
march
10
to
the
16th
and,
let's
begin
with
our
top
announcements
for
the
week
starting
off
growth
core
unit
introduced
both
their
internal
and
dow
calendars
for
posting
content
in
the
maker
dial
twitter
account.
The
internal
calendar
consists
of
gross
production
line
of
content
with
the
objective
to
raise
awareness
and
inform
the
audience
on.
C
What's
going
on
in
maker
dao,
the
internal
calendar
consists
of
discussions,
community
updates,
core
unit
updates
and
announcements.
The
second
calendar,
the
dao
calendar,
is
used
for
core
units
to
communicate
their
own
updates
by
using
a
framework
that
allows
to
request
and
schedule
tweets.
The
post
includes
a
visual,
step-by-step
guide
on
how
to
request
a
tweet
on
the
maker
dial.
Twitter
account
also
don't
forget
to
pick
your
communications
representative
for
the
dow
calendar
and
provide
growth
there.
The
representatives
email
next
up.
C
We
have
ses
presenting
their
ecosystem
performance,
api
and
dashboard
to
help
promote
a
more
efficient
allocation
of
resources
across
makerdale's
work,
workforce,
work
and
capital.
The
focus
of
this
dashboard
is
to
increase
transparency
by
comparing
delivered
work
and
output
across
time
frames,
increase
accountability
by
making
this
dashboard
and
providing
the
relevant
data
and
reduced
information
cost
by
collating
scs
initiatives
into
one
location.
That's
easy
to
access.
C
The
performance
dashboard
will
be
designed
will
be
designed
using
an
api
first
approach,
followed
by
the
designing
of
the
ui
as
the
second
step.
The
post
also
includes
how
ses
addressed
the
need
and
strategy
for
this
dashboard,
which
includes
stakeholder
research
interviews
and
data
model,
designing
also
make
sure
to
check
it
out,
as
it
offers
a
comprehensive
breakdown
of
everything
that
I
mentioned
above,
as
well
as
their
next
steps
going
forward.
C
And
next
up
the
lending
oversight,
core
unit
love,
published
their
overview
and
incubation
update,
love
aims
to
support
the
vision
for
onboarding
complex
assets
to
have
real
use
cases
beyond
just
trading
and
exchange
purposes
by
helping
to
professionalize
checks
and
balances
within
maker,
along
with
aiding
to
financially
mature.
The
wider
ecosystem.
C
Lovecore
unit
believes
it's
time
to
plan
on
belize's
time
to
plan
on
reaching
a
100
billion
dye
mark
by
improving
a
more
sustainable
and
decentralized
framework
to
onboard
complex
collateral
through
engagement
with
high
quality
borrowers,
protecting
assets
against
bad
credit
loss
and
events
and
promote
community
education
and
greater
financial
sophistication
within
the
dao.
There
are
multiple
team,
multiple
teams
and
members
that
are
involved
with
love's
mission,
such
as
will
from
real
world
finance
christian
from
real
world
assault
asset
legal,
robert
from
collateral
engineering
and
more.
C
C
C
Firstly,
by
turning
off
the
mkr
burn
and
instead
focusing
on
building
a
massive
system
surplus
towards
at
least
half
the
amount
of
the
current
die
supply,
which
would
allow
us
to
accept
relatively
greater
protocol
risk
and
take
on
more
profitable
opportunities,
such
as,
for
example,
issuing
a
fixed
rate
financial
instrument
such
as
a
debt
through
an
insurance
fund
and
step
two
involves
us
getting
our
risk
on.
Lately
we
have
been
relatively
risk-averse
and
much
of
our
real
world
asset
progress
is
slowed
by
legal
barriers.
C
However,
there
shouldn't
be
the
single
factor
that
completely
disables
the
onboarding
of
a
real
world
asset.
We
should
discuss
about
conservatively
increasing
our
risk
towards
greater
experimentation
of
real-world
assets
and
with
a
much
higher
surplus
buffer.
We
may
be
able
to
do
this.
The
post
also
speaks
about
improving
our
networking
and
business
strategy
with
lending
protocols
where
they
can
offer
us
expertise
and
risk
assessment
in
exchange
for
cheap
credit,
essentially
being
a
win-win
scenario.
C
The
proposed
mechanism
aims
to
preserve
gas
and
tax
efficiency
of
the
existing,
buy
and
burn
mechanism,
while
also
addressing
its
drawbacks.
The
new
token
is
meant
to
also
replace
mkr.
As
the
core
governance
token
staked
mkr
will
be
non-transferable
with
the
purpose
to
represent
mkr
staked
in
governance.
Users
can
stake
mtr
in
governance
to
receive
the
staked
mkr
token,
which
can
also
be
freely
delegated
initial
example.
Parameters
are
provided
in
the
post
and
the
proposal
is
open
to
the
public
for
further
discussion.
C
As
summarized
in
the
most
recent
weekly
relay,
there
has
been
increased
concern
and
discussion
around
improving
core
unit
budget
modifications,
as
the
number
of
core
unit
continues
to
expand
and
new
core
units
and
incubation.
Existing
coordinates,
strive
for
growth
and
scaling
themselves.
However,
growth
and
scaling
is
usually
accompanied
by
a
request
for
budget
increases,
and
recently
there's
been
a
community-wide
assertion
that
our
workforce
spendings
may
become
unsustainable,
potentially
leaving
the
protocol
in
a
precarious
situation.
C
If,
if
our
revenues
cannot
keep
up
recognized,
delegate,
dunam
calls
for
improving
core
unit
budget
examination
and
awareness,
as
well
as
maker
man,
also
recognized
delegate
who
voices
his
opinion
to
revise
the
current
budget
request.
Mip
40..
However,
there
are
members
from
ses
and
strategic
finance
who
have
been
working
together
to
help
improve
and
implement
a
standardized
budget
process
for
core
units.
But
it's
not
all
just
gloom.
A
number
of
core
units
and
delegates
do
agree
with
these
opinions
and
are
willing
to
help
streamline
the
process
and
help
improve
the
future
budget
modification
process.
A
D
D
The
assessments
have
been
delivered
and
the
ball
is
in
their
court,
and
so
the
status
of
that
is
delivered
from
the
real
world
finance
side
and
sock.
Gen,
I
believe,
is
still
in
progress,
and
so
I
want
to
hand
it
off
to
to,
I
believe,
will
just
to
or
actually
sorry
to
christian
to
really
briefly
talk
through
what
it
actually
means
to
bring
one
of
these
partners
through
the
due
diligence
pipeline,
because
I
think
it's
important
to
educate
stakeholders
on
this
call.
Just
you
know
what
is
involved
in
this
process.
E
Oh
yeah,
thanks
david,
so
this
is
christian
yeah,
so
on
on
the
soccer
transaction,
specifically,
you
know
in
terms
of
what
has
to
happen.
I
think
there
are
two
parts
that
are
happening
now,
which
is
the
technical
due
diligence,
so
the
ces
team
is
ensuring
that
the
token
that
sock
gen
has
in
place
actually
works
and
how
it
works
within
the
maker
vault
and
in
the
soft
chain
case.
For
actually,
you
know
still
working
through
that
issue.
E
E
E
You
know-
and
it
involves
really
negotiating
not
so
much
negotiating
with
them
as
just
making
sure
that
the
agreement
really
reflects
the
transaction
that
has
been
outlined
and
agreed
with,
with
sachin
making
sure
that
some
of
the
legal
issues
that
pop
up
based
on
the
structure
that
we're
seeing
are
adequately
addressed,
and
we
we
have.
There
is
an
issue.
It's
not
so
much
an
issue
anymore.
E
D
You
don't
have
to
go
through
everything
in
detail,
just
just
to
save
time.
My
sure
my
goal
is
really
for
you
to
be
able
to
convey
like
so
that
kind
of
process
that
you
described
with
sock
gen
really
applies
to
every
single
one
of
these
at
various
levels.
There's
a
technical
and
a
legal
assessment
that
has
to
happen
and
and
basically
yeah,
it's
kind
of
like
a
a
volleyball
match
of
going
back
and
forth.
E
Yeah
and
and
to
into
a
higher
level
with
respect
to
every
single
one
of
these
transactions.
You
know
one:
each
asset
is
going
to
be
different,
some
will
be
tokenized,
some
will
be
not
tokenized,
some
will
be
partially
tokenized.
Some
will
have
centrifuge,
they
all
bring
kind
of
a
different
set
of
issues.
Two
the
applicant
is
coming
from
a
different
jurisdiction,
so
we're
having
to
address
issues
of
you
know
where
we
as
maker,
or
you
know
how
we
interact
integrate
with
the
real
world.
E
It's
no
longer,
you
know
a
delaware,
statutory
trust
situation
when,
when
you're
dealing
with
the
transaction,
that's
in
a
jurisdiction
outside
of
the
u.s,
and
that
involves
then
a
number
of
other
issues
that
need
to
be
considered
both
by
the
applicant
and
ourselves.
So
it's
that's.
Actually,
probably
one
of
the
biggest
issues
I
deal
with
is
just
that:
d5
real
world
integration
piece
and
each
one
of
these
transactions
has
that.
F
Just
do
one
minute,
david
christmas:
we
are
the
fact
we
are
doing
a
lot
of
heavy
lifting
that
in
the
medium
term,
we
would
expect
the
counterparties
to
do
themselves
right
come
with
a
with
a
with
an
application
that
is
as
ready
as
possible.
We
were
on
a
call
with
christian
and
and
monkey
irish
yesterday
on
this.
F
This
is
the
ambition,
obviously,
that
we
are
having
so
we're
trying
to
work
for
the
for
the
short
term,
because
we
know
the
community
is,
I
wouldn't
say
impatient,
that
is
eager
to
do
business
with
real
world
real
world
borrowers
and
also
working
for
the
long
term
in
standardizing
and
productizing.
What
what
what
these
guys
are
doing,
because
I
mean
I
I'm
stealing
kristen's
words
from
a
call
yesterday-
I
think
we
don't
want
to
transform
maker
in
an
old
thread
five
bank.
F
D
Thank
you,
luca,
all
right,
so
an
interesting
time.
Let's,
let's
kind
of
fly
through
the
rest,
so
milestone
two
is
to
graduate
the
three
real
world
asset
related
core
units
from
the
ses
incubation
program,
and
I
believe
the
intention
is
to
take
the
existing
real
world
finance
core
unit
and
essentially
split
it
into
three
that
have
their
each
each
have
their
own
specific
scope.
D
And,
of
course,
you
know,
other
teams
play
a
huge
role
in
that,
like
ces,
and
so
I'm
not
gonna
get
into
like
the
the
mega
details
of
where
each
of
these
are
scs.
Incubation
program
has
a
number
of
standard
sort
of
steps
for
each
core
unit,
and
so
the
three
of
these
are
are
all
in
progress
and
are
in
varying
stages
of
being
put
together
so
yeah.
D
G
Thank
you,
david,
hey
everyone.
I
know
the
title
of
this
might
be
a
little
bit
different
than
what
I'm
going
to
suggest,
because
there
are
multiple
core
units
involved
in
revamping
the
pipeline
for
applicants.
But
to
give
you
a
very
quick
update,
this
is
the
upcoming
revisions
to
the
collateral
onboarding
process.
G
So
we
just
want
to
be
very
careful
that
we
have
the
necessary
core
units
lined
up
to
be
able
to
answer
questions,
and
it's
part
of
that
too,
to
tack
onto
something
that
I
think
luca
was
talking
about.
Is
that
I
would
also
another
action
is:
is
that
to
set
expectations
and
clarity
on
what's
possible
today,
as
it
relates
to
the
proposals
that
are
being
made
for
onboarding
real
world
assets?
G
And
we
do
have
tech
today
and
I
just
want
to
make
sure
that
we're
clear
in
the
community
that
the
mechanisms
that
we
have
available
to
us
there
are
some
proposed
mechanisms
that
we'd
love
to
see
in
the
future,
but
there's
some
work
that
needs
to
be
done
before
we
get
there.
So
so
there
are
again
realities
and
expectations
that
we
just
want
to
set
to
be
able
to.
Let
everyone
know
if
we
do
decide
onboard
a
piece
of
collateral
the
process
by
which
we
would
do
that
today.
G
D
E
Yeah
on
the
the
maple
finance
one,
we
really
have
just
gotten
started
on
on
centrifuge.
We've
made
a
little
more
progress.
I
think
centrifuge
has
posted
something
recently
and
they
we
are
now
just
kind
of
having
discussions
on
the
on
the
agreement
and
just
trying
to
make
sure
that
the
points
that
have
been
raised
in
the
king
by
the
community
over
the
past
period
of
time,
with
respect
to
central
fusion,
how
we
should
improve
the
overall
structure
of
their
transaction
are
being
addressed.
D
E
Yeah
sure
again
so
on
this
one,
it's
really
just
again
trying
to
find
the
the
first
time
way
for
us
to
remove.
You
know
bring
on
new
assets
to
replace
the
usdc
and
again
it's
the
real
world.
D5
touch
point
that
is,
is
locked
right
now
and
we're
just
looking
for
various
keys
to
unlock
that
and
we're
having
discussions
with
various
people
and,
actually,
frankly,
the
more
discussions
we
have
with
people,
the
better
understanding
we
have
of
counterparty's
issues,
and
I
feel
more
more
confident
that
we're
going
to
find
that
key.
E
F
H
H
H
Our
net
interest
income
is
down
34
from
prior
month
in
workforce
and
oracle
gas
expenses
were
down
17
and
60
respectively.
Note.
The
workforce
expenses
reflected
here
on
chain
flows
and
may
not
be
reflective
of
the
actual
cash
burn.
Please
reference
the
expense
reports
that
the
strategic
finance
team
is
on
the
performance
to
find
this
information.
H
Our
recurring
income
was
down.
38
percent
and
lending
markets
have
continued
to
take
a
beating
through
mid-march,
but
we've
started
to
see
a
few
signs
of
life
the
past
few
days
and
collateral
prices.
So
hopefully
this
trend
continues
next
slide.
Please
thank
you.
Here's
a
waterfall
chart
breaking
out
the
month
over
month
change
and
recurring
net
protocol
income.
H
So,
as
we
all
know,
risk-weighted
assets
have
continued
to
unwind
over
the
past
several
months,
but
yields
have
also
been
decreasing
as
well.
So
we've
taken
a
significant
hit
to
the
bottom
line,
despite
lower
workforce
and
oracle
expenses.
They're
not
significant
enough
to
offset
the
large
decreases
in
both
the
change
in
assets
and
yield
next
slide.
Please.
H
I
Hi
everyone
nice
to
meet
you
and
eager
to
come
on
board.
I
don't
know
if
you
can
hear
me
correctly,
but
shout
if,
if
not
yeah,
look
forward
to
getting
a
chance
to
meet
everyone
and
sorry
to
jump
in
with
such
a
grim
subject
as
as
a
mip
budgeting
and
but
you
gotta
start
somewhere,
and
I
think
here
we
just
wanted
to
highlight
the
conversation.
That's
been
happening
in
some
of
the
forum
posts.
I
There's
been
a
a
lot
of
frustration,
maybe
with
a
lack
of
clarity
and
the
way
that
we
accept
the
budgets,
the
processes
that
are
involved
in
particularly
also
the
frequency
with
which
they
arise
on
the
forums.
So
you
know
they
tend
to
be
quite
sporadic.
They
try
to
fit
the
governance
windows,
but
this
can,
you
know,
end
up
being
overwhelming
for
make
holders
and
for
delegates
to
evaluate
in
a
diligent
way.
I
We
wanted
to
show
you
some
of
our
results
and
conclusions,
so
on
this
slide,
we
are
basically
showing
a
simplified
piano,
focusing
only
on
the
recurring
items,
excluding
the
operation
and
training
and
what
we've
done
along
the
right
hand.
Side
of
the
table
is
illustrate
various
simplistic
scenarios
ranging
from
bull
to
super
bear
and
the
impact
that
this
may
this
might
have
on
the
protocol
cash
flow.
I
I
We
have
two
further
lines
below
the
yellow
row
to
show
what
this
would
look
like
if
we
approved
100
of
all
of
the
proposed
new
core
unit
expenses
and
then
below
that
our
hypothetical
increase
in
core
units
expenses
related
to
customer
acquisition.
So
this
is
something
that
some
of
our
competitors
engage
in
but
maker.
I
I
Compression
has
competition
intensified,
so
you
know
two
percent
net
portfolio
yield
we're
assuming
will
decline
across
each
of
the
areas
in
our
instant,
but
there's
no
scenario
where
they
will
trend
back
up
and
then
simplistically,
we're
assuming
that
oracle
gas
scales
with
the
size
of
the
assets
in
the
protocol,
which
may
or
may
not
be
one-to-one
true.
But
we
try
to
come
up
with
a
heuristic
and
in
any
case
it's
not
it's
not
actually
one
of
the
main
cost
drivers.
I
I
Our
environment
is
still
quite
early
in
the
adoption
verb
and
it's
still
in
a
stage
where
things
move
in
fits
and
starts
rather
than
sort
of
continuous
pumping,
s-curve
style
growth
and
then.
Secondly,
we
also
wanted
to
highlight
the
impact
of
ongoing
operating
expenses
on
the
profitability
and
sustainability
of
the
protocol.
I
So
here
the
key
message
is
that
adding
operating
costs
makes
cash
flow
more
sensitive
to
changes,
and
that
sebastian
is
noting
we're
in
a
in
a
very
startup
fashion,
we're
excluding
stock
based
compensation.
So
all
of
the
maker
expenses
are
are
not
included
in
this
table,
but
they
would
come
on
top
as
well.
I
So
there's
two
risks.
I
think
that
we'd
like
people
to
take
away
from
this
slide
in
terms
of
the
exposure
that
our
protocol
faces
to
to
very
different
types
of
risk,
the
first
one
is
being
caught
off
guard
with
high
operating
expenses,
yielding
very
little
business
results
when
conditions
deteriorate.
I
The
second
one
is
the
opposite:
risk,
which
is
being
caught
off
guard
with
low
investments
in
growth,
in
an
environment
when
the
market
is
really
pumping
and
then
lagging
behind
our
competitors
and
losing
share.
So
we
summarized
these
two
risks,
as
insolvency,
which
has
actually
happened
once
before
to
maker-
and
you
know,
bets
are
often
whether
it
will
happen
more
than
once
again
and
then
the
second
one
is
the
flipping,
which
is
the
risk
of
maker
being
flipped
by
one
of
its
competitors.
I
There's
no
formal
accountability,
it's
easier
to
onboard
than
to
offload,
as
we've
seen
with
the
shop
example,
so
to
resolve
this.
What
we'd
like
to
do
is
propose
some
budgeting
principles
that
should
aim
to
do
two
things.
The
first
is
to
help
core
units
remove
cognitive
overhead
when
it
comes
to
managing
reporting.
I
So
this
is
a
you
know.
We
want
core
units
to
focus
on
the
business
of
core
unity
and
being
a
dao
and
being
maker
and
to
minimize
the
amount
of
time
spent
on
on
paperwork
and
the
second
and
more
important
one
is
to
equip
maker
holders
and
delegates
with
the
best
and
most
timely
operating
plans
and
financial
information
with
which
to
make
decisions.
I
So
all
these
principles-
we've
focused
on
four
main
ones-
the
first
and
most
important
one-
is
that
each
core
unit
investment
should
help
to
drive
new
revenues
and
or
should
help
to
support
the
business
effect
and,
in
the
absence
of
overarching
sort
of
bowel
objectives
or
an
executive
team
that
can
set
this
direction
in
a
in
a
in
a
coherent
way.
An
easy
way
of
us
of
of
testing.
I
The
third
one
is
financial
transparency,
so
a
little
is
better
than
nothing
and
more
is
better
than
a
little,
and
here
we
would
like
to
encourage
you
all
of
the
core
units
to
be
as
transparent
as
possible,
as
is
already
a
part
of
the
maker
culture
as
I've
been
able
to
to
see
and
then
finally
is
the
flexibility
to
respond
to
changing
macro
environments.
So
these
two
key
risks
they
move
in
either
direction,
and
I
think
the
protocol
and
coordinates
need
to
be
prepared
to
react
in
an
agile
way
to
both
scenarios.
I
I
So,
to
summarize,
the
end
state
that
we're
aiming
at
are,
firstly,
dial-wide
organizational
goals
that
support
the
strategic
focus
areas
that
there's
there's
a
general
sense
of
overall
motivation,
but
I
think
of
overall
motivation
and
overall
direction.
But
I
think
it's
you
know
there
are
numerous
conversations
about
how
there's
a
general
sort
of
lack
of
a
on
paper
tablet
strategy
that
everyone
is
driving
towards
in
the
same
direction.
All
the
time-
and
this
is
maybe
part
of
the
challenge
of
being
a
dao.
But
having
these
organizational
goals
in
mind
would
be
helpful.
I
The
second
one
and
in
practical
terms,
something
that
we
can
help
solve
faster,
is
a
budgeting
process
with
a
more
robust
mp40,
with
defined
budgeting
periods
and
find
a
way
to
align
them
with
these
organizational
goals.
However,
they
might
be
defined,
clear,
transparent
standardized
and
timely
financial
reporting
and
then
finally,
a
way
to
to
measure
core
unit
performance
and
alignment
with
the
mind
that
they've
been
entrusted
with
by
making
workers.
I
So
much
for
yeah
will
here's
mentioning
auditability
who
guards
the
guardians
even
the
auditor?
These
are
all
good
points,
and
this
is
exactly
the
sort
of
discussion
that
we
wanted
to
to
stimulate
in
the
school.
So
thanks
for
your
time
again,
nice
to
meet
you
sorry,
I
had
to
be
in
this
with
this
serious
set
of
slides,
but
I
look
forward
to
interacting
with
more
of
you
in
the
future.
H
H
But
yeah,
thank
you
adrian
and
yeah
just
to
tie
a
bow
on
this.
You
know
we
know
a
lot
of
people.
Ses
included
are
working
on.
You
know
these
types
of
initiatives
already
and
there's
definitely
a
lot
of
collaboration
going
on
behind
the
scenes,
and
you
know
I
think
many
also
on
this
call
attended
the
ses
like
performance
update
and
and
that's
in
the
pipeline
too.
H
A
Well
appreciate
the
presentation
there.
I
know
we
haven't
had
too
much
time
for
discussion.
Hopefully
we'll
have
a
little
bit
at
the
end
of
this
next
one,
but
resilience
does
speak
pretty
well
to
some
of
the
things
we
just
spoke
about,
so
I
will
go
ahead
and
hand
it
straight
over
to
a
doctor.
I
believe,
is
doing
the
presentation.
J
First,
I
want
to
set
a
little
bit
of
of
context
so
why
we
are
starting
with
this
strategic
initiative.
So
if
you
want
to
go
to
the
next
slide,
of
course,
all
the
the
discussions
and
definitely
the
kind
of
budget
flexibility
that
was
mentioned
is
very
much
applicable
to
the
ses
activities
so
more
on
the
onset
of
our
season,
2
of
the
incubation
program
and
with
the
changing
market
conditions,
it's
really
difficult
to
plan
so
for
the
entire
trajectory.
J
It's
almost
nine
months
that
you
have
to
look
into
the
future
and
given
that
the
crossroads
that
we're
at
it
go
really
could
go
really
in
in
all
directions,
so
yeah,
we
we
need
a
little
bit
more
strategy
and
structure
around
that
in
order
to
be
able
to
fit
everything
in.
I
think
monkey
irish
did
the
post
on
the
forum.
The
asking
questions
like
is:
make
it
our
startup
or
are
we
supposed
to
be
an
established
organization?
How
are
we
funded,
etc?
J
There
are
the
the
checks
we
want
to
put
in
place
for
expenses.
On
the
other
hand,
there's
yeah
there's
a
need
for
continued
growth
and
the
question:
what
does
sustainable
growth
look
like
and
yeah
in
general?
What
will
make
it
out?
Look
like
in
a
year,
so
these
these
are
all
very
relevant
questions
for
the
things
that
we're
organizing.
J
Our
current
approach
is
basically
one
of
flexibility
and
resilience,
so
we're
staying
on
course
with
what
I
call
contingency
add-ons,
meaning
that
we're
not
cancelling
everything
or
something
like
that
and
that
might
be
overreacting
rather
will
continue
to
to
work
on
the
incubation
program,
but
with
support
for,
for
example,
what
we
call
minimal
minimum
viable
operations.
So
this
is
very
much
in
line
what
was
mentioned.
Thinking
about
you
know:
what
does
the
minimal
cost
that
you
can
can
carry
to
operate
remaining
flexible
in
terms
of
scaling
parameters?
J
But
these
are
ics
specific
concerns
that
are
related
to
many
more
general
concerns
that
have
been
living
in
the
dao.
So
if
you
go
to
the
next
slide,
yeah
the
and
these
these
concerns
are
what
we
just
talked
about.
So
the
operating
expansion
expenses
rather
and
what
sustainable
or
unsustainable
growth
looks
like
this.
J
So
this
has
been
a
challenge
from
the
very
start
of
of
the
dow
and
now
in
when
we're
at
these
these
crossroads.
It
becomes
extra
important
because,
if
you
think
about
things
like
evaluating
a
budget
proving
or
rejecting
a
budget,
this
is
very,
very
dependent
on
the
strategy
and
division.
The
same
core
unit
with
a
budget
might
make
sense
in
one
scenario
where
it
may
make
no
sense
in
another
scenario,
totally
dependent
on
which
direction
you
want
to
go
in.
J
These
are
a
set
of
or
a
part
of,
a
set
of
broader
alignment
challenges
and
now
and
yeah,
as
was
also
mentioned,
the
the
the
typical
challenges
of
korean
transparency
and
accountability
are
also
things
that
we're
still
working
on
more
recently.
There
have
been
a
lot
of
questions
about
the
role
and
responsibility
of
delegates
as
well,
and
then
the
point
was
often
brought
up
that
the
governance
lacks
lacks
really
efficient
evaluation
and
feedback
tools.
J
J
J
J
So
we
believe
that
this,
this
additional
challenge
that
we're
put
before
is
is
an
opportunity
here
to
explore
yeah
how
we
can
basically
synthesize
an
emerging
strategy
and
vision
together
with
the
delegates,
so
that
should
be
very
interesting
experiment
to
to
coordinate
and
we
yeah
that
the
last
point
is
that
we
want
to
ensure
that
short-term
changes
do
fit
within
the
longer
term
strategy.
So
a
lot
of
ideas
have
been
brought
up.
How
we
can
improve
the
issues
that
we're
facing
and
yeah.
J
We
want
to
make
sure
that
we
bring
them
all
together
and
that
they
fit
into
a
broader
strategy.
This
would
be,
as
adrian
mentioned.
This
would
be
with
an
iterative
approach
where
we
can
combine
quick
action
with
longer-term
alignment,
so
the
stakeholders
for
this
initiative,
contrary
to
the
existing
initiatives.
J
It
would
not
just
include
the
relevant
representatives,
but
also
delegates
who
are
interested
so
we'll
be
reaching
out
to
the
recognized
delegates
and
ask
them
if
and
to
which
extent
they
would
like
to
participate
and
yeah.
We
will
be
acting
as
the
initiative
facilitator,
at
least
initially
until
the
the
grantor
has
been
laid.
So
if
you
go
to
the
next
slide,
please
to
make
things
a
little
bit
more
concrete,
so
the
kind
of
activities
that
we
would
work
on.
J
J
If
you
go
to
the
next
slide
yeah.
This
is
the
last
point
I
believe,
so
we
want
to
keep
things
as
transparent
as
possible,
and
I
believe
there
is
no
reason
here
to
to
actually
limit
transparency
in
any
way.
So
we
already
have
a
discord
channel
similar
to
the
other
initiatives.
What
is
called,
which
is
called
the
resilient
stakeholder
alignment
channel
and
we'll
be
asking
that
that
be
made
available
for
all
makergan
members,
so
that
there's
full
transparency
about
the
discussions.
J
We're
having
the
coordination
calls
will
be
open
for
anyone
who
wants
to
join
and
they'll
also
be
recorded
for
people
who
don't,
who
can't
join
due
to
time
zone
incompatibility,
for
example,
and
then,
as
any
other
initiative,
will
bring
these
regular
status
updates
to
the
gnr
calls,
and
no
doubt
for
this.
One
we'll
need
forum
discussions
to
find
to
engage
with
the
community
and
find
the
alignment
on
the
different
issues
that
will
be
discussed
and
I
believe
that's
it.
For
the
presentation.
A
Thanks
great
so
those
three
things
that
we
just
presented,
I'm
sorry
that
did
take
a
little
bit
of
a
time,
but
they
are
pretty
independently
related.
So
we
think
we
will
have
kind
of
an
open
discussion
about
the
topics
we
just
covered
and
general
future
and
finance
related
thoughts
for
for
maker
down.
D
A
So
going
back
to
the
finance
presentation,
I
don't
know
if
marker
adrian
would
be
ideal
against
this,
but
you
mentioned
kind
of
in
the
broader
lending
markets.
There's
there's
been
this
pullback
right,
it's
not
just
a
maker
down.
I
was
wondering
if
we
could
spend
a
few
moments
going
over
kind
of
the
the
potential
causes
or
or
reasons
why
why
we
might
be
seeing
that.
H
H
I
think
there's
also
some
fundamental
changes
in
the
market
that
we're
starting
to
see
you
know
with
l2s,
starting
to
pick
up
and
side
chains
as
well
as
steak.
Death
is
a
big,
a
big
trend
right
and
you're.
Seeing
you
know
tons
of
state
eath
flow
into
maker,
and
I
think
that
trend's
likely
to
continue
right,
especially
after
the
merge
and
staking
becomes
continues
to
proliferate
to
a
much
higher
degree.
H
So
you
know
we
start
to
see
a
little
price
relief
the
past
few
days,
but
I'm
not
ready
to
call
that
a
trend
yet,
but
perhaps
things
might
turn
around
you
know.
One
thing
we're
looking
at
specifically
is
kind
of
like
segmenting
the
customers
based
on
their
you
know,
debt
size
and
what's
actually
kind
of
counterintuitive.
That
we've
seen
so
far
is
that
the
largest
vaults
have
brought
down
their
exposure
more
relative
to
the
small
volts,
the
smaller
volts,
I'm
talking
about,
like
10
million
plus
size
vaults.
A
A
A
H
Like
we
need
to
have,
you
know
clear
clarity
and
confidence
into
like
how
that
cash
flow
is
going
to
increase
right,
so
that's
kind
of
why
we
started
to
do
these
off
chain
on
chain
reconciliation
since
we're
not
going
through
like
a
formal
accrual
process
right,
so
you
know
there's
a
buffer,
that's
measured
in
like
our
actual
balance
sheet.
We
have
basically
surplus
buffer
plus
the
cash
balance.
That's
in
those
other
wallets
right,
that's
not
in
the
maker
protocol
itself
right.
So,
if
you
look
at
you
know
the
surplus
buffer
on
like
maker
burn.
A
So
sorry,
I
muted
myself
there.
So
I
know
you
want
to
get
to
do's
question
but
real
quickly.
How
does
a
subsidiary
say
someone
like
kkr
or
jp
morgan,
who
has
maybe
like
a
hundred
different
subsidiaries
report,
their
earnings
when
you
know,
say
jp
morgan
vision,
fund
number
two
is
sitting
on
200
million
in
cash
just
trying
to
get
an
idea
how
subsidiaries
are
reporting
these
to
the
public
markets.
H
Generally,
subsidiaries
will
consolidate
into
the
parent
company,
but
it
depends
how
much
of
the
parent,
how
much
of
the
subsidiary
the
parent
company
owns
so
like
sometimes
there's
like
equity
investments
right.
So
if
it's,
you
know
greater
than
50
ownership.
It's
going
to
consolidate,
like
the
pro
rata
financials
from
that
subsidiary,
but
if
it's
less
than
that,
it
might
just
account
for
it
as
an
equity
investment
on
on
their
balance
sheet
and
their
equity.
H
I
Whenever
it's,
whenever
yeah,
whenever
things
are
implied,
it
becomes
a
lot
harder
to
to
evaluate
objectively
or
even
right
objectively.
So
our
aim
with
the
mid-40
with
the
revised
mid-40,
is
to
bring
this
clarity
and,
like
we
mentioned
earlier,
removing
this
cognitive
overhead
for
the
person
who's
submitting
the
budget
so
that
they
know
so
that
they
don't
have
to
think
twice
about
how
to
write
it
in
the
first
place.
But
so
they
can
ask
themselves.
I
K
Hey
no
problem
thanks,
everybody,
you
know
in
my
post,
one
of
the
things
I
brought
up
was
this
idea
of
segregating
operational
expenses.
You
know
or
critical
operations,
even
from
growth
right.
We
every
organization
I've
ever
been
in
has
a
distinct
segregation
on
that
and
they
they
do
a
status
update
right.
Am
I
a
growth
company?
K
Do
I
have
money?
Can
I
grow,
or
am
I
in
operations
mode
just
trying
to
get
to
a
place
where
I
can
get
some
revenue,
so
I
can
do
something
new.
So
the
point
is
is
that
the
budget
is
ultimately
the
centralizing
constraint
for
an
organization
and
it's
a
thing
that
we're
going
to
have
to
deal
with,
and
this
brought
up
some
somebody
else
brought
this
up
and
I
brought
it
up
before.
K
Is
this
idea?
If
you're
going
to
be,
you
know,
you
have
autonomous
people
who
are
in
autonomous
cus
that
are
going
to
coordinate
to
do
something.
Then
you
might
want
to
think
about
giving
making
it
so
that
they
can
actually
drive
revenue
to
be
sub
unit.
Businesses
that
are
actually
can
get
revenue
from
other
places
so
that
then
you
can
kind
of
they
can
be
autonomous
in
some
way
and
that
their
budget
requirements
from
a
particular
player
can
be
mitigated
to
some
extent
right.
And
so
I
don't
see
anybody
really
talking
about
that.
K
Although
we've
kind
of
started
that
process
here.
So
I
think
that
discussion
will
continue,
and
so
one
thing
I
was
thinking
about
was
you
know
this
would
be
for
strategic
finances
kind
of
to
undertake
a
review.
We've
got
a
whole
bunch
of
mips,
including
mip,
sixes,
we've
done
and
to
review
all
of
those
to
determine
which
ones
led.
K
K
And
if
we
under
take
a
look
at
that,
we
can
probably
get
a
handle
for
what
mips
and
what
things
we
want
to
focus
on
that
are
going
to
lead
to
revenue
and
what
things
are
pretty
much
a
waste
of
time.
For
the
dow
at
least,
to
get
a
first
shot
at
that,
and
so
these
are
the
kind
of
few
things
that
I'm
looking
at.
You
know
as
well
as
figuring
out.
H
I
think
you
know
going
back
to
this
whole
iteration
trying
to
move
forward
quickly,
because
little
is
better
than
nothing
and
more
is
better
than
little
right
and
I
think
we're
at
the
point
where
you
know
we
have
20
core
units.
I
think
over
100
contributors
that
we
can
start
putting
together
some
of
these
activities
right
and
get
the
ball
rolling.
You
know
there's
a
ton
of
priorities
for
the
dow
as
a
whole
and
a
lot
of
things
that
need
to
be
worked
on.
H
But
given
the
structure,
I
think
having
accountability
is
important
right
because
there's
a
lot
of
trust.
That's
going
out
to
you,
know
contributors,
and
we
need
to
make
sure
that
you
know
maker
holders
and
their
interests
are,
you
know,
being
reflected
and
taken
into
account
right.
So
you
know
we're
also
in
a
position
now
where
markets
have
been
bearish
and
cash
flow
has
been
declining.
A
Smart
stole
your
thunder,
I
mean
I'll
just
chime
in,
but
it
would
just
sound
like
echoing
the
main
thing.
Is
I
really
like
the
idea
of
not
only
tying
everything
to
p
l,
because
I
think
that'll
sort
of
give
us
this
granular
focus
that
will
be
tied
more
to
market
sentiment
and
to
wilder's
point
on
the
forum.
I
think
we
need
to
have
room
to
take
bets
and
experiments
on
things
if
we
don't
iterate
towards
the
future.
We
want,
then
what's
the
point.
A
D
Yeah,
that's
actually
something
that
my
core
unit
governance
communications
struggles
with
a
lot
to
defend,
because
you
know
we
don't
directly
drive
revenues,
but
our
impact
is
more
on.
You
know
the
stakeholder
user
experience
side
of
things.
So
not
just
how
you
know
things
get
tracked
at
maker
dial,
not
just
how
core
units
work
together
on
various
initiatives,
but
also
how
external
stakeholders,
like
just
investors,
can
have
access
to
the
happenings
of
makerdale.
Like
you
know
what
what
kind
of
reports
are
we
putting
out?
How
do
we?
Where
do
we
put
them
out?
D
And
so
it's
very
indirect,
like
we
don't
drive
revenue,
but
you
know
we
find
ourselves.
We
we
believe
ourselves
to
be
very
impactful
for
the
day-to-day
business
operations
and
so
yeah.
We
set
kpis
for
the
team
as
a
whole
for
our
individual
team
members
and
even
for
our
individual
programs,
but
it's
something
that
is
not
as
easily
quantifiably
attracted.
We
seem
to
see
it
more
as
a
qualitative
thing,
but
yeah.
This
is
something
that
we're
certainly
thinking
about.
C
J
If
it's
a
supporting
thing
or
something
that
is
valuable
in
another
way,
then
you
really
need
a
strategy
and
a
vision
in
order
to
to
to
fit
that
in,
and
that's
really
where
the
the
core
units
that
are
that
are
cost
leaders
in
certain
strategies
and
certain
visions
made
may
make
a
lot
of
sense
in
other
visions
or
strategies
may
mean
not.
A
lot
of
may
not
make
a
lot
of
sense.
J
So
that's
what
we
hope
to
to
help
with
with
the
the
new
strategic
initiative
is
to
to
figure
out
that
connection
to
to
at
least
formulate
that
emergent
strategy
and
vision
that
we
talked
about
and
then
make
it
possible
to
to
base
decisions
on
on
that
right,
because
without
that
like
it's,
it's
not
enough
to
to
only
have
numbers
and
and
and
rois
some
things
are
long
term.
Some
things
are
indeed
just
they
make
sense.
A
H
Yeah
just
to
put
some
closing
thoughts
on
this
roi
versus
non-roi
support
versus
revenue
generating
core
units.
I
think
one
thing
that's
not
talked
about
enough
that
brian
wrapped
in
the
chat
is
the
perspective
of
the
vault
users.
We're
truly,
you
know
the
customers
of
the
protocol,
the
people
that
are
driving
the
revenue,
the
cash
flow
everything
right
like.
I
think
there
needs
to
be
a
lot
more
focus
on
on
that
perspective,
like
just
purely
like
a
product
perspective
and
getting
the
growth
from
those
customers.
H
H
H
So
if
we
do
things
make
investments
that
make
the
you
know,
customer
user
experience
better
like
that's
going
to
create
a
lot
of
value.
Whether
that's
not
you
know
someone,
you
know
from
growth,
finding
an
institutional
client
like
it's
just,
I
think,
naturally,
people
being
drawn
to
the
protocol,
because
it's
just
a
pure
product
than
what's
on
the
market.
So
I
think
we
need
to
have
a
big
focus
in
that
area.
I'm
not
sure
exactly!
J
So
you
can,
you
can
calculate
the
hypothetical
roi,
but
then
still
there
are
many
things
that
maker
could
do
that
might
in
the
future
be
profitable,
but
obviously
we
don't
want
to
do
all
those
things
so,
which
things
do
you
want
to
do
and
which
things
do
you
not
want
to
do?
That's
where
you
need
strategy
and
vision
to
determine
what
is
in
scope
and
what
isn't
and
yeah.
I
think
that
very
well
illustrates
the
problem.
A
Awesome
and
yeah,
I
appreciate
all
the
points
and
chats
wouldn't
be
too
hard
to
highlight
all
of
them,
but
thanks
everyone
for
for
staying
engaged,
seeing
a
lot
of
like
comments
like
we
should
try
this
or
we
should
do
this
and
probably
a
good
time
just
remind
you
know,
it
is
a
doubt.
So
if
there's
something
you
see
that
you
think
would
be
beneficial,
you
can
do
it
and
you
know,
encourage
you
to
to
take
ownership
and
post
things
transparently
and
engaged
with
with
the
whole
community.
A
D
A
All
right,
we
seem
to
kind
of
be
naturally
winding
down,
I'm
not
sure
if
that's
due
to
the
time
or
people
running
out
of
things
to
say,
but
I
appreciate
the
conversation
and
special
thanks
to
everyone
who
presented
today
as
usual,
we'll
be
back
same
place
same
time
next
week
and
yeah.
Thank
you.
Everyone
for
joining.