# MIP40c3-SPXX: Real-World Finance Core Unit MKR Compensation (RWF-001)

## Preamble

MIP40c3-SP#: XX
Author(s): Sébastien Derivaux (@SebVentures)
Contributors:  
Tags: core-unit, cu-rwf-001, budget, mkr-budget
Status: RFC
Date Applied: 2021-09-20
Date Ratified: /

## Sentence Summary

MIP40c3-SPXX adds the MKR Compensation budget for Core Unit RWF-001: Real-World Finance.

## Paragraph Summary

This proposal contains the MKR Compensation budget for the Core Unit RWF-001: Real-World Finance. This proposal is based on [Alternative MKR Compensation Guidelines](https://forum.makerdao.com/t/mip56-alternative-mkr-compensation-guidelines/9230) by @Aes, which provides an average of 80 MKR per FTE per year over 3 year with a 1 year cliff.

## Team MKR Compensation Plan

We used [Alternative MKR Compensation Guidelines](https://forum.makerdao.com/t/mip56-alternative-mkr-compensation-guidelines/9230) by @Aes, currently as a MIP in RFC phase, as well as components of the [SES MKR Incentive Plan Proposal](https://docs.google.com/document/d/1oV0E_Eet-sLZ9Gr6jHAi7cPuSOHs2XiMGxwYpnzRLZE/edit#heading=h.gjnhzeq6khio).

### Vesting Details

|Property|Value|
| --- | --- |
|Vesting Period|3 years|
|Cliff Vest|12 months|
|Vesting Schedulue| After the cliff has expired, the Quarterly MKR amount vests every 3 months and is distributed on July/Oct/Jan/Apr 1st, depending on each individual full-time onboarding (CU was established on xx/xx/xx
|Estimated Max Total team MKR After 1 Year (7 FTE)*|560|
|Estimated Max Total team MKR After 3 Years (7 FTE)*|1,680|
|Manual Repricing|Yes|

**Note that this estimation is based on all 7 FTEs joining the Real-World Finance Core Unit on day 1. There are currently only 4.5 FTEs working for the Real-World Finance Core Unit, some having joined recently.**

**Equality** The MKR compensation is planned to be flat between contributors with a difference between the highest and lowest below x2 on a FTE basis (vs x3 in the guidelines).

**Inclusion of non full-time contributors** While the Core Unit is looking to be filled by full-time contributors, we recognized that experimented part-time members are bringing significant value to the Core Unit. Therefore, they will be included pro-rata of their participation.

**Transferability** We anticipate people from the Core Unit to migrate to another Core Unit and/or create their own Core Unit at some point. Any accrued MKR will be transferred to the person at the end of the vesting period.

## MKR Vesting Schedule

||MKR Total|
| --- | --- |
|April 2022|560|
|July 2022|140|
|October 2022|140|
|January 2023|140|
|April 2023|140|
|July 2023|140|
|October 2023|140|
|January 2024|140|
|April 2024|140|

This covers the total vesting schedule of `3 years` for the planned `7 FTEs`.

On average, the team MKR vesting schedule yields `80 MKR` per FTE per year, or 560 MKR in total per year. Excess MKR token will be returned to MakerDAO with the DSPause address or any other address achieving the same purpose.

Manual repricing allows any contributor of the Risk Core Unit to calculate a new MKR/USD lock-in price using the trailing 6 month average. This ensures that contributors who join during a bull market aren’t penalized relative to new contributors who join later during a bear market. In order to prevent abuse, manual repricing will reset the 12 month cliff vest period.

## Payment Implementation

MKR compensation is based on Manual Budget Implementation, the Simple one and same as used for regular budget, or any other method achieving the same result at the discretion of the Governance Facilitators. Real-World Finance Core Unit may consider alternative payment flows compliant with [DssVest](https://forum.makerdao.com/t/mip-54-dssvest/8025) if the standardized flow is compatible with the vesting schedule.

* Payment: based on predetermined MKR compensation schedule
* Asset type: MKR
* Address: 0x9e1585d9ca64243ce43d42f7dd7333190f66ca09