# MIP74c1-SP: Adding & Modifying a Permissionless Open Market Operation [Template]

## Preamble

MIP74c1-SP#:
Author(s): @Leritu
Contributors:
Tags:
Status:
Date Proposed: 2022-12-02
Date Ratified: yyyy-mm-dd
Ratification Poll URL:
Forum URL:
Amount Requested on Annual Basis and Total per Duration:

## Sentence Summary

Restart a micro-burn of MKR, at $100/day, from the surplus buffer as a display to current and prospective MKR holders that the protocol still intends to embrace this important feature of driving long-term value and return on investment to MKR holders.

## Paragraph Summary

As a community, I believe that we know a core part of the appeal of holding MKR tokens is the “burn” feature that should drive value to MKR holders over time. It makes sense why that feature is turned off right now… but I fear that if it is turned off for too long, current and especially prospective MKR investors may forget that it is a feature all together. At $100/day, the impact on our surplus buffer is not a material amount. Additionally, if we as a community believe that Maker is going to be successful, buying the MKR token at these price points should yield a beneficial return over the coming years.

## Motivation

* Send a clear message to MKR holders that the "burn feature" of this protocol is still an intended part of our future, even if it is practically suspended for now during this crypto bear market.
* Place a small amount of psychological pressure on those shorting MKR's token on the open market that the burn feature is indeed returning. MKR is not to be shorted with impunity.
* In the future, when we choose to increase the burn amount, it will be similar to a publicly traded company announcing an increased buyback of stock. This will allow us to show confidence in the future of the MKR token.
* Buying small quantities of MKR tokens at such a depressed price is likely to generate a positive return on this initiative when viewed a couple years from now.

## DssKiln Permissionless Open Market Operation Name

Good Faith MKR Micro-Burn

## DssKiln Permissionless Open Market Operation Risks & Unwanted Outcomes

* Risk that the surplus buffer is entirely depleted and there are no funds to burn $100/day
* Risk that $100 is viewed negatively as being too small and a discouragement, rather than an encouragement to MKR holders
* Transaction costs of a $100/day burn may be too high of a percentage of the daily spend

## DssKiln Permissionless Open Market Operation Duration

* It will continue until either increased in size or cancelled

## DssKiln Permissionless Open Market Operation General & Specific Parameters

* $100 burn per 24 hour period
* Purchased on the open market

## DssKiln Permissionless Open Market Operation Amount Requested on Annual Basis, Schedule of Funds Deployment & Source of Funding

* DAI equivalent = 100
* Schedule: Daily
* Fund Transfer: Once per month transfer of $3000. In the event that a month has more or less days, the amount can be modified to match the number of days in the month
* Funding Source: Surplus Buffer

## DssKiln Permissionless Open Market Operation Management & Oversight

* Oversight Bodies: Unknown – open to suggestions

## DssKiln Permissionless Open Market Operation Code Auditing & Audit Financing

* Code/Audit: Unknown – not aware of what, if any, new coding would be required – open to suggestions

Official Contact of DssKiln Permissionless Open Market Operation Oversight Group: The designated contact for the DssKiln Strategy.
Contract Email/Handle: The contact details for Oversight Group
Date Added: yyyy-mm-dd
Operation Duration: Duration of operation
Amount Requested on Annual Basis and Total per Duration: In DAI or USD equivalent and absolute token amount
Source of Funds for Operation: Where funds will be sourced from
Type & Schedule of Asset Deployment: Type and rate at which funds will be deployed
Schedule of Reporting on Performance: Rate at which reports will be published
Required Audit: Yes/No
Source of Financing for Audit: Define source of financing for audit process