---
tags: MIPs clarity check
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# MIP97: The DAO-level Objective Framework

MIP#: 97
Title: The DAO-level Objective Framework
Author(s): @retro, @juan
Contributors: 
Tags: process
Type: general
Status: RFC
Date Proposed: 2022-01-11
Date Ratified: 
Forum URL: https://forum.makerdao.com/t/mip97-the-dao-level-objective-framework/19390
Ratification Poll URL: 

## Sentence Summary

The DAO-level Objective Framework enables a process for 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, the available budget for the delivery of the objective, desired milestones, and the required timeline for delivery.

## Component Summary

**MIP97c1: The DAO-level Objective Framework**
Provides an overview of the overall framework.

**MIP97c2: Adding a DAO-Level Objective Proposal (DLO)**
Describes the proposal template and requirements to submit an eligible DLO.

**MIP97c3: Standard DAO-Level Objective Proposal (DLO) parameters**
Provides defined best practices that increase the usability of DLOs by Governance and the opportunities for continuous improvement.

**MIP97c4: Governance Cycle**
Defines how the DLO framework integrates with Maker's Governance Cycles.

**MIP97c5: 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 that better define 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 currently 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.

**Rewrite:**

The DAO-level Objective (DLO) Framework is designed to give governance powerful alignment tools that better define 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, being the needed Governance catalyst to enable this ground-breaking work.

This MIP does not impact any currently approved budgets at MakerDAO. The use of this framework for current or future budgets is optional. This framework is being introduced as a further tool for the DAO to use as deemed fit.

## Specifications / Proposal Details

### MIP97c1: 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 is eligible for submission as long as the DLO meets the requirements defined in MIP97c2.

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 utilizing the Work Proposal Framework (MIP98) 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 the usability of this tool. To accomplish this, best practices are named and defined in MIP97c3. 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 MIP97c4. The framework recognizes that this could increase the Governance overhead of stakeholders and delegates, however with proper utilization of the framework’s features, the overall process will streamline budget requests and create more enriching engagements with the workforce.

Once a DLO is approved, a MIP editor must update MIP97c5 for both tracking and retrospective archival purposes.

**Rewrite:**

The DAO-level Objective (DLO) Framework furnishes governance with powerful alignment tools to (1) consistently define and broadcast what projects the DAO needs done and (2) pair these with undertaking workforce through MIP98: The Work Proposal Framework.

DLOs (see MIP97c2) can be drafted and submitted for Maker Governance consideration by any individual. DLOs are subject to Maker Governance approval; they enter the monthly governance cycle and follow specific governance cycle parameters (see MIP97c4).

Although the value generated by DLOs can be created through other MakerDAO funding mechanisms (such as a MIP40 or MIP55), this framework requires the use of the Work Proposal Framework (MIP98) as the [primary/chosen?] Governance tool to enable funding for DLOs.

We recognize that the introduction of an additional framework could increase Governance overhead. However, we believe that proper use of the framework will outweigh any possible drawbacks by streamlining funding requests and creating richer engagement with the workforce. See MIP97c3 for best practices.

THIS :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.

OR THIS: Note that best practices may not apply to all cases all the time --- deviating from them can indeed be the smart thing to do sometimes. The DLO Framework recognizes this and is therefore flexible, allowing for bespoke DLO configurations.

The Framework includes component MIP97c5 which is used for tracking and archival purposes.

## MIP97c2: 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 may or may not be subject to Maker Governance approval upon delivery (deliverable parameters are defined in section 4 of this subcomponent). This is however a valuable step to create a feedback loop of Governance providing their perspective on the work delivered.

4. Desired Timeline and Milestones for Delivery

Timeline - MakerDAO’s operational climate moves quickly. An Objective may require a specific timeline for delivery. This section defines the desired timeline for a DLO’s Deliverables once a Work Proposal for that DLO is accepted. This is defined as a number of months and is set for the overall DLO.

Milestones - Milestones are a powerful alignment tool within this framework that dictate operational parameters for Deliverables. This can be leveraged to build Budget Distributions and Reporting Requirements. Milestones must be defined for all Deliverables listed in Section 4 of this subcomponent. Appropriate uses of Milestones are defining the order for completing deliverables if desired and requiring specific reporting cadences, based on work completion 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 one or more teams to deliver work. 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(s), then this number can be set above one. An infinite number of teams can be defined; this would result in a DLO’s maximum allowable teams being restricted by the utilization of the Budget Cap through approved Work Proposals.

Workforce Team Requirements or Restrictions - This parameter defines any desired requirements or restrictions for a Workforce Team to be considered eligible for the DLO. Any requirements should be easily verifiable, ideally using a methodology that protects the workforce’s anonymity.

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 (MIP97). 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 required to have a defined Expiry, also defined in months. The expiry of a DLO does not impact 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. Both Dai and MKR are in-scope as appropriate types of capital for funding.

A template for DLOs is provided here: MIPxxc2-SPxx DAO-level Objective Template - HackMD 4

**Rewrite**

A DLO is a defined opportunity or project that serves as a request from MakerDAO to workforces to deliver well-defined work. The objective and deliverables are defined using a top-down approach. DLOs allow Governance to provide clear expectations of available funding, desired reporting details, timelines, and other specific DLO parameters detailed below.

DLOs must follow the [DLO template](https://hackmd.io/gdrU2YpnSFetobcud6c83g), which includes the following 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 (1) the origins of the objective, (2) the future state of the DAO once the objective is achieved, (3) and any known challenges the DAO has faced previously related to the objective.
**3. List of Deliverables**: A well-defined and obtainable list of deliverables. Deliverables are quantifiable byproducts of work. Deliverables may or may not be subject to Maker Governance approval upon delivery. Deliverable parameters are defined in the next (4th) point.
**4. Desired Timeline and Milestones for Delivery**
* **Timeline**: An Objective may require a specific timeline for delivery. This section defines the desired timeline for a DLO's Deliverables. This is defined as a number of months and is set for the overall DLO.
* **Milestones**: Milestones dictate operational parameters for Deliverables. Milestones can be used to build budget distributions and reporting requirements, to define the order for completing Deliverables, etc., based on work completion or time. Milestones must be defined for all Deliverables listed in the previous (3rd) point.

**5. DLO Parameters**: These are specific parameters that DLO authors can utilize to tailor the DLO to diverse circumstances and opportunities.
* **Maximum Number of Workforce Teams**: A DLO is designed to enable one or more teams to deliver work. The number of workforce teams can be set to _unlimited_, with the Budget Cap utilization by approved Work Proposals being the practical limit in that case.
* **Workforce Team Requirements or Restrictions** - This parameter defines any desired requirements or restrictions for a Workforce Team to be considered eligible for the DLO. Any requirements should be easily verifiable, ideally using a methodology that protects the workforce's anonymity.
* **DLO Expiry** - Once a DLO is approved by Governance, the DLO becomes active and workforce teams can request assignment of the work through a [Work Proposal (MIP98)](https://forum.makerdao.com/t/mip98-the-work-proposal-framework/19391). 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 required to have a defined Expiry, also defined in months. The expiry of a DLO does not impact 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. Both Dai and MKR are in-scope as appropriate types of capital for funding.

## MIP97c3: Standard DAO-Level Objective Proposal (DLO) Parameters

## MIP97c4: Governance Cycle

DLO submissions follow the below governance cadence:

* RFC Period: `2 weeks minimum`
* Formal Submission: `Any time after the RFC period has passed`
* Frozen Period: `2 weeks before Formal Submission`
* On-chain vote: `1 week`

The voting parameters for a DLO on-chain vote are:

* Abstain
* Approve
* Reject

## MIP97c5: DLO Tracking

This component is used for tracking the status of Approved DLOs through their defined life cycle. A MIP editor must update this MIP following a successful on-chain vote. 
* 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 to it instead of the standard subproposal nomenclature.
* **Open** status defines a work proposal as approved. It either does not have any active teams assigned to the DLO, or the DLO still has a remaining budget, or the assigned team(s) for delivery are still below the remaining defined maximum in the DLO parameters (point 3 of MIP97c3). ???
* **Active** status defines a DLO that is assigned to a team(s) for delivery.
    * **Open-active** status defines a DLO that has a team assigned, but still has available capacity for more teams to contribute
    * **Closed-active** status define a DLO is not accepting new teams but the DLO is still being delivered by an assigned team.
* **Closed** status defines a DLO that has reached Expiry and cannot be assigned to any new teams.


A sample entry is provided below:

DLO # - Short Description
Status: Open/Active-Open/Active-Closed/Closed
Expiry Date: YYYY-MM-DD

### DLO Tracking Entries: