# AD Buffer Interpretation

## What is the AD?

The AD buffer is an account of MKR that builds up when an AD is either a PD or RD (ATLAS_2.6.3.4).

The AD buffer contains a maximum of one months worth of income for a given PD or RD (ATLAS_2.6.3.4).

An AD's maximum buffer size is modified by their AVC participation metrics, voting activity metrics and communication metrics. (Interpretation)

An AD's MKR compensation is used to fill each AD's buffer until it is full (ATLAS_2.6.3.4).

MKR is not paid out to an AD address until its AD buffer is full (ATLAS_2.6.3.4).

## When is an AD buffer paid out to an AD?

If an AD loses all of its income, MKR in their buffer is used to pay it at its previous rate until the buffer is empty. (ATLAS_2.6.3.4.1).

If an AD loses part of its income by moving from PD to RD, MKR in their buffer is used to pay it as though it was a PD until the buffer reaches the level required of an RD. (ATLAS_2.6.3.4.1).

If an AD is derecognized, any remaining MKR of an AD's buffer can be used to pay the AD after whistleblower bounties and confiscation has taken place. (Interpretation)

## When is an AD buffer not paid out to an AD?

An AD's buffer can be used to provide a whistleblower bounty if the AD acts misaligned (ATLAS_2.6.3.4.2)

An AD's buffer can be used to provide a whistleblower bounty if the AD has their privacy compromised (ATLAS_2.6.3.4.2)

A FacilitatorDAO may confiscate an AD's buffer if they are derecognized due to misalignment or breach of requirements. (ATLAS_2.6.5.1)

The AD's buffer can be used to provide a whistleblower bounty if information provided leads to derecognition of the AD. (ATLAS_2.6.5.1 - CONFLICT)

Half of the AD's buffer can be used to provide a whistleblower bounty if information provided leads to the determination that the privacy of an AD has been compromised. (ATLAS_2.6.6 - CONFLICT)

## FacilitatorDAO's Role

A FacilitatorDAO can derecognize an AD if the AD has performed a misaligned act. (ATLAS_2.6.5.1)

A FacilitatorDAO can derecognize an AD if the AD has breached the AD requirements. (ATLAS_2.6.5.1)

## Current State of the Alignment Artefacts

Governance Scope Article 6 must specify sufficient safety mechanisms around the payment of whistleblower bounties. (ATLAS_2.6.5.1 + ATLAS_2.6.6)

Governance Scope Article 6 does not currently specify sufficient safety mechanisms around the payment of whistleblower bounties. (GOV_6)

In the interim period, Governance Facilitators (formerly Arbitration Facilitators) must ensure that all rules of FacilitatorDAOs are followed. (GOV_7)

Given the requirements of ATLAS_2.6.5.1 have not been met, whistleblower bounties will not be paid out or accrued. (Interpretation)

## Transition

AD Buffers were ratified partway through May. AD MKR compensation for May will be paid directly to AD addresses. AD Buffers will begin accruing in June. (Facilitator Decision)

One month's worth of additional compensation will be paid to all PD's and RD's existing at time of MIP102c2sp7 ratification as part of the June payout. (GOV_12.2)