# Know Your MIP #11 June 10, 2022 at 16:00UTC. ## Agenda - Intro with Blimpa - Presentation with Adrian (@adcv) - Discussion ### Intro Duration: aim 2-5 minutes max? - Hello, everyone. Welcome to the eleventh episode of KYM, the series where we go in-depth... on MIPs. We're back after the longest hiatus yet. - For this episode we have Adrian (@adcv) from SF-001 with us. He's one the authors of a recently ratified amendment that introduced big changes in MIP40, the MIP that defines how Core Unit budgets are to be handled. - KYM calls are usually divided, in a fuzzy way, in two sections: 1) a presentation by MIP authors and 2) questions from the audience and discussion. This might or might not be the case today. We don't have a traditional presentation today - Adrian is going to be walking us through the MIP and through the process of putting a budget together under the new framework. - If you have questions before the presentation is over, please raise your hand or use the chat - Adrian, thank you for being here. I'm going to ask one single opening question that I think is useful for context; after that, it's all yours: what was the motivation for this amendment? ### Presentation Duration: aim 20 minutes max? ### Discussion Duration: 30-40 minutes ### Outro - Thank you, everyone. Thank you, Adrian, for the presentation. It was awesome/good/not bad/acceptable. - Let's keep the discussion going in the Forum - [MIP40 important changes](https://forum.makerdao.com/t/amended-mip40-important-information-for-core-units/15450) - Before closing, let me remind you that we're having KYM 12 with Tim Black on Tuesday 14 at 17 UTC; it's going to be about the Core Unit Offboarding Process amendment *** #### Ideas for discussion - [ ] Reduced flexibility with Windows - Special deals out of "Schedule" - [ ] Multiple budget alternatives (in addition to A: Business as usual)? Sounds reasonable - Make reference to [Growth Budget](https://forum.makerdao.com/t/mip40c3-sp70-modify-growth-core-unit-budget-gro-001/15102) where multiple budget alternatives were introduced - [ ] MKR compensation: would these budgets be limited to one year too? - [ ] Return of Excess Funds: is there any flexibility around this? - Can a CU withhold funds if they anticipate a large one-off expense later in the year? - [Patrick_J's comment](https://forum.makerdao.com/t/mip4c2-sp19-mip40-budget-process-amendment/14250/5?u=gala) - [x] How can we define the "objectives of the DAO"? - [Juan's comment](https://forum.makerdao.com/t/mip4c2-sp19-mip40-budget-process-amendment/14250/17?u=gala) - Make sure CUs are aligned with them. - Support core units (GovAlpha,GovComms): harder to show revenue - Cross core unit initiatives - [ ] Reporting Transparency: List expenses by type, per the Chart of Accounts and Core Unit Operating Expense Budget Template - [Pon Jerry's comment](https://forum.makerdao.com/t/mip4c2-sp19-mip40-budget-process-amendment/14250/27?u=gala) - What if there are expenses that do not properly fit into any of the categories listed? Is the CU free to add categories to fit those expenses? - When this happens, are we modifying the Chart? it does not sound like a suggestion. It sounds like expenses should be listed there... Change the wording ? - Unwinding: how detailed should it be? - We believe that it is important to define how long the undwinding process will take and how it will be compensated (aka Interim Facilitator Compensation) - We might need to amend this part of MIP40 to match the references to it made in the Core Unit offboarding process amendment. #### Resources - [MIP40 important changes ](https://forum.makerdao.com/t/amended-mip40-important-information-for-core-units/15450) - Grace period - [Payton's comment](https://forum.makerdao.com/t/amended-mip40-important-information-for-core-units/15450/3?u=gala) - [MIP40 Amendment - forum post](https://forum.makerdao.com/t/mip4c2-sp19-mip40-budget-process-amendment/14250/13) Notes: ROI - we are not expecting a %. Useful for facilitator and voters to see what is the value that a CU is bringing in.