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# System prepended metadata

title: 5. Incentives

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# 5. Incentives 

## Summary

This proposal defines the framework for calculating domain incentives in order to properly reward and incentivize work by domain facilitators and contributors.

## Motivation

Maker governance needs to be able to broadly prioritize what work gets done by the domain teams, without micromanaging or directly intervening in their self organized work. Setting domain incentives through the adjustment of strategic weights enables this.

## Specification / Proposal Details

### 1. Definition and purpose of domain incentives

- The domain incentive exists to allow the DAO to broadly prioritize and direct attention to specific Core Units and goals, by having community members and MKR holders decide the strategic weight of particular Core Units.
- The Domain Incentive is paid out in addition to the budget, and does not represent specific expenses.
- It is both used to incentivize high quality work and top talent in the domains, and ensure that work that grows the project as a whole is generously rewarded. By carefully setting the strategic weights of particular Core Units, it enables Maker governance to indirectly prioritize how the domains are working.

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### 2. Strategic weight calculation

- The domain incentive available to a Core Unit is calculated based on the relative strategic weight of that Core Unit compared to the combined weight of all Core Units. The Core Unit receives a relative proportion of the total domain incentive equivalent to its relative strategic weight.
    - If a Core Unit has a strategic weight of 10, and the total strategic weight of all Core Units combined is 200, then that Core Unit receives 5% of the global domain incentive

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### 3. Global domain incentive parameter

- This parameter can be a simple number, or be set to a time based formula
- Current value: 0%

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### 4. Global domain incentive parameter modification sub proposal process

- Sub proposals of this process modify the current value of MIPY5c3 if approved
- The proposal parameters are: Feedback period: 1 month / Frozen period: 1 week.

**template:**

c1: New Global Domain Incentive Parameter

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