---
tags: MIPs
---

# MIP40c3-SP#XX: Modify GovComms Core Unit MKR Budget

## Preamble

MIP40c3-SP#: X
Author(s): David Utrobin
Contributors:
Tags: core-unit, cu-gov-001, budget, mkr-budget
Status: RFC
Date Applied: 2022-03-21
Date Ratified: xxx

## Sentence Summary

This budget proposes MKR compensation for GovComms (COM-001) with a vesting component.

## Paragraph Summary

This budget consists of an MKR Compensation framework for GovComms. Overall, this proposal would commit xxx MKR to COM-001 contributors, covering MKR compensation for the Core Unit from its inception.

This is approximately xxx MKR/FTE/Year. Subsequent requests will take place every 6 months, featuring the same 12-month cliff.

Contributors do not forfeit their vesting upon leaving GovComms, providing that their departure is a smooth transition and there have been no serious ethical breaches.

## Specification

### Motivation

MKR Vesting plays an important role in incentive alignment for Core Unit Members. By tying a meaningful element of compensation to the performance of the MKR Token, members of the Core Unit are further incentivized to be good stewards of the Protocol.

We decided to go with the same framework that is being used by GovAlpha(GOV-001) due to its simplicity and effectiveness.

Specifically, we see these advantages with our proposed implementation:

* More clarity on the amount of MKR being allocated (proposals are retroactive, based on already paid labor).
* Flexibility, as the parameters can be updated 2 times a year.
* A larger percentage of compensation in MKR, giving more alignment with protocol performance.
* Easier system for facilitators to administrate.
* Continues after contributors leave, keeping alignment even if a contributor is leaving the Core Unit/MakerDAO.
* Easier system for applying towards part-time contributors who are paid hourly, an essential part of the GovComms workforce.

### Core Unit ID

COM-001 (Governance Communications)

### List of Budget Implementations

This proposes MKR compensation for current core unit members, with a proposed framework for use in future MKR budget proposals.

Current Core Unit MKR Compensation proposals will be resubmitted every 6 months as detailed below.

#### GovComms Member MKR Composition

The following implementation will be applied from August 2021 (the birth of GovComms) to December 2021, 5 months. Subsequent proposals will follow the same math but will be limited to the figures from the previous 6 months.

_Eligibility_

Anyone currently working for GovComms, who has not given notice at the time of this proposal, is eligible for MKR Compensation.

Future proposals will follow the same logic, ensuring that anyone working for GovComms during our 6-month proposal cadence will be rewarded by this framework.

_Formula_

For all members of GovComms (Facilitator included), MKR Compensation will be derived based on the salary or hourly Dai/USD compensation earned during the retroactive eligibility period.

This proposal would compensate our team members in MKR in the amount of 200% of the DAI earned during the eligibility period. This figure will be divided by the moving average of MKR over the eligibility period to derive the MKR token amount for each contributor.

_Sources_

Eligibility Period - Will be from August 1st, 2021 until December 31st, 2021 for this proposal, dating back to the inception of the Core Unit. Future eligibility periods will be 6 months in length, using the first of the month before their formal submission as an end date of eligibility, starting on the previous proposal’s end date.

Salary - This will be derived from all contributor and Facilitator invoices paid by GovAlpha during the eligibility period.

MKR Moving Average - Is derived from the “Close” price on CoinGecko (latest data point per day, UTC), taking the average closing price for that eligibility period.