MIPxx - DAO-level Objective Framework

--- tags: Capital Management Improvement MIP Set title: MIPxx - DAO-level Objective Framework --- # MIPxx - The DAO-level Objective Framework # Sentence Summary The DAO-level Objective Framework enables a process for Maker Governance to define contribution opportunities to Maker through projects with specific deliverables. # Paragraph Summary The DAO-level Objective Framework is a tool for Maker Governance to increase the alignment and coordination of a decentralized workforce to desired projects. This is accomplished by the utilization of a DLO - a Request for Proposal document - that defines the opportunity or project, available budget for the delivery of the objective, desired milestones, and the required timeline for delivery. # Component Summary **MIPxxc1: The DAO-level Objective Framework** provides an overview of overall framework. **MIPxxc2: Adding a DAO-Level Objective Proposal (DLO)** describes the proposal template and requirements to submit an eligible DLO. **MIPxxc3: Standard DAO-Level Objective Proposal (DLO) Configurations** provides defined best-practices increasing the usability of DLOs by Governance and increases the opportunities for continious improvement. **MIPxxc4: Governance Cycle** defines how the DLO framework integrates with Maker's Governance Cycles. **MIPxxc5: DLO Tracking** defines how Governance must track and archive DLO data. # Motivation The DAO-level Objective (DLO) Framework is designed to give governance more powerful alignment tools which better defines the desired work and expectations of its workforce, while also preserving the autonomy and decentralized characteristics of the workforce. This framework is timely for the evolution of Maker, which requires the workforce to reorganize into Endgame ready entities by creating the needed Governance catalyst to enable this ground-breaking work. This MIP does not impact any current approved budgets at MakerDAO and utilization for current or future budgets is optional. It is being introduced as an available tool for the DAO to use as desired. # Specifications / Proposal Details ## MIPxxc1: The DAO-level Objective Framework The DLO framework is initiated through the submission of a DLO to Maker governance. The DLO is available for any individual to draft and eligible for submission as long as the DLO meets the requirements defined in MIPxxc2. Although the value created by DLOs can be realized through other MakerDAO funding mechanisms (such as a MIP40 or MIP55), this framework is designed and requires uiltlizing the Work Proposal Framework (MIPxx) as the primary Governance tool to enable funding for DLOs. The intention of the framework is to define and document best practices for DLOs to enhance usability of this tool. To accomplish this, best practices are named and defined in MIPxxc3. Bespoke configurations of DLOs are either created with specific intentions for the objective, or piloted on a case-by-case basis with the intention to amend this MIP with the lessons learned from those instances. The DLO is subject to Maker Governance approval, meaning that although anyone is able to propose a DLO, Maker Governance has the power to accept or reject the proposal. The specific Governance Cycle defined for DLOs is defined in MIPxxc4. The framework recongizes that this could increase the Governace overhead of tokenholders and delgates, however with a proper utilization of the frameworks features, the overall process will streamline budget requests and create more enriching enagements with the workforce. Once a DLO is approved a MIP editor must update MIPxxc5 for both tracking and retrospective archival purposes. ## MIPxxc2: The DAO-Level Objective Proposal (DLO) A DLO is a defined opportunity - or project - that serves as a request from MakerDAO to the decentralized workforce to deliver well-defined work. The objective and deliverables are defined using a top-down approach, allowing Governance to provide clear expectations of available funding, desired reporting details, timelines, and other specific DLO parameters detailed below. A DLO has the following required sections: **1. Sentence Description of the Objective** - a one sentence, short description of the Objective. **2. Paragraph Description of the Objective** - a long form description of the Objective. This section should describe the origins of the objective, the future state of the DAO once this objective is achieved, and any known challenges the DAO has faced previously related to this objective, if available. **3. List of Deliverables** - A well-defined and obtainable list of deliverables is required. Deliverables are quantifiable byproducts of work. Deliverables are subject to Maker Governance approval upon delivery. This is a necessary step to complete the feedback loop of Governance providing valuable feedback on the work delivered. **4. Desired Timelines and Milestones for Delivery** - MakerDAO's operational climate moves quickly. Projects may require specific timelines for delivery. This section defines the desired timeline for a DLO's deliverables, and should be utilized as a reporting tool for Governance to define the desired milestones or time requirements for reporting. Milestones are also used to control fund distributions, which can also support long-term (or even performance based) funding opportunities. * **Timeline** - The DLO timeline is used to define any applicable required timelines for the project's delivery once a Work Proposal for that DLO is accepted. This should be defined as a number of months. * **Milestones** - Milestones are a powerful alignment tool within this framework that can dictate operational parameters for Deliverables, Budget Distributions, and Reporting Requirements. Milestones must be defined for all Deliverables listed in Section 4 of this sub component. Milestones can be utilized to define the order for completing deliverables, if desired. Milestones can also be utilized to require specific reporting cadences, based on completed or time. **5. DLO Parameters** - These are specific parameters that DLO authors can utilize to tailor the DLO to the current environment and opportunity the DAO faces. * Maximum Number of Workforce Teams - a DLO is designed to enable 1 or more teams for delivery. If a DLO is designed or best fit for delivery by a single team, the author should set this parameter to one. If a DLO is designed to have multiple teams producing the deliverable, then this number can be set above one. An infinite amount of teams can be defined, resulting in a DLO's maximum allowable teams to be dictated by the utilization of the Budget Cap. * Workforce Team Requirements or Restrictions - * DLO Expiry - Once a DLO is approved by Governance, the DLO is active and workforce teams can request assignment of the work through a Work Proposal (MIPxx). It is expected that larger, more complex projects may require some period of time for a Work Proposal to be submitted and accepted. It is also expected that some DLOs may require immediate action. To manage the overhead of the lifecycle of DLOs, they are designed to have a defined Expiry date. The expiry of a DLO does not impact an accepted Work Proposals, it simply prevents new Work Proposal submissions and/or assignments of DLOs to workforce teams. **6. Budget Cap** - A DLO must define the overall budget that Maker Governance commits to accomplishing the DLO. This serves a dual purpose both for Maker Governance and the workforce: * Based on the DLO parameter for **Maximum Number of Workforce Teams** and available Budget Cap, this serves as a signal for to workforce on how they could price their Work Proposal to be awarded a DLO. * Using data from the Budget Caps of all DLOs, this framework enables the DAO to have more concrete expense/runway forecasting and overall strategy discussions. Leveraging the DLO expiry and Timeline parameters of this framework can also create a tool for work prioritization. A template for DLOs is provided here: https://hackmd.io/gdrU2YpnSFetobcud6c83g ## MIPxxc3: DAO-Level Objective Proposal (DLO) Default Configuration !!!WIP!!! ### List of Deliverables * Smart Contracts * Operations * Maintenace * Governance Design ### Timelines * Open * Defined ### Milestones * Stream Based Budget * Delivery Based Budget * Incentive Based Budget * Retention Based Budget * Performance Based Budget * Experimental Reporting * Standard Reporting * Maintenance Reporting * Event Based Reporting * SES Auditor Framework ## MIPxxc4: Governance Cycle DLO submissions follow the below governance cadence: * RFC Period: 2 week minimum * Formal Submission: Anytime after the RFC period has passed * Frozen Period: 2 weeks * On-chain vote: 1 week The voting parameters for a DLO on-chain vote are: * Abstain * Approve * Reject ## MIPxxc5: DLO Tracking This subcomponent for the DLO Framework is reserved for tracking the status of Approved DLOs through the defined lifecycle for the proposal. A MIP editor must update this MIP following an on-chain vote with an Approve outcome. A sample entry is provided below: ``` DLO # - Short Description Status: Open/Active/Active/Closed Expiry Date: YYYY-MM-DD ``` * The DLO # is an index number that increments by 1 for every approved DLO. This is done to increase the ability for discussion on the proposal by assigning an easier to communicate index for the opportunity instead of the standard sub proposal nomenclature. * Open defines a work proposal as approved, but it either does not have any active teams assigned to the delivery of the DLO, or the DLO still has remaining budget or the assigned teams for delivery is still below the remaining defined maximum in the DLO parameters (Section 3 of MIPxxc3). * Active defines a DLO that is assigned to team(s) for delivery. * Closed defines a DLO that has reached expiry, and cannot be assigned to any new teams. * Status can be hyphenated to denote open-active (meaning it has a team assigned, but still has available capacity for more teams to contribute), or closed-active (meaning the DLO is not accepting new teams, but is still being delivered by a previously assigned team). DLO Tracking Entries: