---
# System prepended metadata

title: MIP39
tags: [CU Offboarding]

---

---
tags: CU Offboarding
title: MIP39
---

# MIP39: Core Unit Framework

## Preamble

```
MIP#: 39
Title: Core Unit Framework
Author(s): @juanjuan
Contributors: @elprogreso, @iammeeoh
Tags: process, core-unit-framework, mip-set, core-unit-framework-mipset
Type: Process
Status: Accepted
Date Proposed: 2021-01-18
Date Ratified: 2021-25-03
Dependencies: MIP38, MIP40, MIP41, MIP4c2-SP10, MIP4c2-SP12
Replaces: n/a
Ratification Poll URL: https://vote.makerdao.com/executive/template-executive-vote-approve-march-2021-governance-cycle-bundle-march-22-2021?network=mainnet#proposal-detail
Forum URL: https://forum.makerdao.com/t/mip39-core-unit-framework/6096
```

## References

[MIP39c2-Subproposal-Template.md](https://github.com/makerdao/mips/blob/master/MIP39/MIP39c2-Subproposal-Template.md)
[MIP39c3-Subproposal-Template.md](https://github.com/makerdao/mips/blob/master/MIP39/MIP39c3-Subproposal-Template.md)

## Sentence Summary

MIP39: Core Unit Framework contains a framework for managing Core Units and modifying them in the DAO Primitives State MIP.

## Paragraph Summary

MIP39: Core Unit Framework contains a framework for managing Core Units and modifying them in the DAO Primitives State MIP. The Core Unit is the basic building block for organizing work for the DAO. It denotes particular long-term objectives that Maker Governance has decided for the protocol to be secure and successful.

## Component Summary

**MIP39c1: Core Units**
Gives an overview of the most important characteristics of Core Units.

**MIP39c2:Adding/Modifying Core Units (Subproposal Process)**
The process for adding new Core Units to the DAO primitives State or modifying already existing ones.

**MIP39c3:  Removing Core Units (Subproposal Process)**
The process for removing Core Units in the DAO primitives State.

## Motivation

As the Foundation dissolves, MakerDAO must take over the tasks and responsibilities no longer fulfilled. We believe MakerDAO's current structure is too ill-defined to be able to integrate these successfully. A new scheme is needed for MakerDAO to achieve this crucial integration on its way to full autonomy.

Core Units are DAO Primitives designed to be easy-to-transition-to and capable of accommodating both the current structures and the Foundation's newly delegated operations within a coherent framework.

Core Units define long-term work areas and cover a broad set of responsibilities or focus. They are the basic units of work that Maker Governance is able to oversee, manage and prioritize.

## Specification / Proposal Details

### MIP39c1: Core Units

**What is a Core Unit?**

A Core Unit is a structure that has a budget attached to it, managed by one or more Facilitators, that coordinate and pay contributors working to achieve a long-term goal within MakerDAO.

Core Units are proposed by community members and voted on by Maker Governance. Each Core Unit may have a budget (MIP40). The Facilitators (MIP41) of a Core Unit may have additional permissions over the Maker Protocol or Governance Processes depending on their Core Unit's nature.

**Core Unit Mandates**

Core Unit Mandates set the direction of the work that Facilitators must help carry out by using their budget and exercising their Governance Powers.

Mandates should be high-level and avoid trying to micromanage the Core Unit processes; instead, they should be broad, open-ended and give room for manoeuvre so as not to stifle the Facilitators' ability to come up with innovative solutions and efficient processes.

Mandates can be regarded as "questions" for Facilitators to "answer" with their Facilitator Commitment (MIP41) when proposing to be onboarded to a given Core Unit.

Mandates from different Core Units can overlap to create redundancy and parallelize and decentralize work within the DAO.

**Core Objectives and Domains**

Core Objectives and Domains are not directly defined in the DAO Primitives MIP Set but are flexible concepts that emerge through the interaction of DAO Primitives.

Core Units are at the intersection of Domains (which denote skill sets and capabilities) and Objectives (which denote cross-domain long term workstreams.)

A Core Unit can participate in multiple objectives and can fall under one or more domains.

---

### MIP39c2: Adding/Modifying Core Units (Subproposal Process)

This subproposal process allows Governance to create or modify an existing Core Unit by setting its Mandate and/or its name.

> Care should be taken so that names and Mandates don't end up drifting apart from each other.

Once a subproposal is approved, the Governance Facilitator or the MIP Editor modifies the DAO Primitives State (MIP38) to append a new entry with the Core Unit specified in the subproposal. The Operational Support Core Unit, or the MIP Editor or Governance Facilitator, will also assign a Core Unit ID (e.g.: `GOV1`) to uniquely identify the given Core Unit.

The proposal parameters are:
- Minimum feedback period: 1 month.
- Minimum frozen period: 1 week.

MIP39c2 subproposals must use the template located at [MIP39c2-Subproposal-Template.md](https://github.com/makerdao/mips/blob/master/MIP39/MIP39c2-Subproposal-Template.md).

---

### MIP39c3: Removing Core Units (Subproposal Process)

This subproposal process allows Governance to remove a Core Unit from the DAO Primitives State (MIP38). A Core Unit can only be removed if it has no active budget implementations (see MIP40) and no active facilitators (see MIP41). However, a Core Unit can be offboarded in the same governance cycle as removing its budget and facilitator(s). More precisely, if a Core Unit has no active budget implementation, no active facilitators, no facilitator onboarding proposals in formal submission, and no budget requests in formal submission, no further action is required for the Core Unit to be officially offboarded.

> This process component defines the process to offboard a Core Unit. Offboarding a Core Unit:
> - Cancels all ongoing streams and cancels all scheduled future transfers, with the exception of the continuity budget, if such has been set up for the Core Unit being removed.
> - Offboards its Facilitators, who lose their special governance powers
> - [Administrative stuff like deleting their channels on Discord, their categories on Discourse, and all around making sure it's clear that it is no longer a Core Unit recognized by MakerDAO]
> - Removes the Core Unit from MIP38
>
> The no-longer-Facilitators of an offboarded Core Unit must conduct all winding down activities within four months. Winding down activities include (but is not limited to) settling outstanding obligations to all contributors, settling any outstanding debts or current obligations of that Core Unit to third parties, orderly transfer of any intangible assets of the DAO to another Core Unit, and return of any DAI in excess of that needed to wind down activities in an orderly manner.

An Interim Facilitator as referenced in MIP41c6 is not an active facilitator for the purposes of MIP39c3. A Core Unit with an Interim Facilitator conducting winding down activities (such as returning assets to MakerDAO) shall be considered offboarded, even if those winding down activities are not yet complete.



The proposal parameters are:
- Minimum feedback period 1 month
- Minimum frozen period: 1 week

MIP39c3 subproposals must use the template located at [MIP39c3-Subproposal-Template.md](https://github.com/makerdao/mips/blob/master/MIP39/MIP39c3-Subproposal-Template.md)