---
# System prepended metadata

title: 'Know Your MIP #11'

---

# 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. 

