---
# System prepended metadata

title: 'MIP97: The DAO-level Objective Framework'

---

# MIP97: The DAO-level Objective Framework 

```
MIP#: 97
Title: The DAO-level Objective Framework
Author(s): @retro, @juan
Contributors: 
Tags: process
Type: general
Status: RFC
Date Proposed: 2022-01-11
Date Ratified: 
Forum URL: https://forum.makerdao.com/t/mip97-the-dao-level-objective-framework/19390
Ratification Poll URL: 
```

## Sentence Summary

The DAO-level Objective Framework enables a process for Governance to define contribution opportunities to Maker through projects with specific deliverables.

## Paragraph Summary

The DAO-level Objective Framework is a tool for Maker Governance to increase the alignment and coordination of a decentralized workforce to desired projects. This is accomplished by the utilization of a DLO ---a Request for Proposal document--- that defines the opportunity or project, the available budget for the delivery of the objective, desired milestones, and the required timeline for delivery.

## Component Summary

**MIP97c1: The DAO-level Objective Framework**
Provides an overview of the overall framework.

**MIP97c2: Adding a DAO-Level Objective Proposal (DLO)**
Describes the proposal template and requirements to submit an eligible DLO.

**MIP97c3: Standard DAO-Level Objective Proposal (DLO) parameters**
Provides defined best practices that increase the usability of DLOs by Governance and the opportunities for continuous improvement. 

**MIP97c4: Governance Cycle**
Defines how the DLO framework integrates with Maker's Governance Cycles. 

**MIP97c5: DLO Tracking**
Defines how Governance must track and archive DLO data. 

## Motivation

The DAO-Level Framework (DLO) furnishes governance with a set of processes and procedures to efficiently pair MakerDAO's work/project requests with willing, undertaking workforce.

We consider the introduction of this framework timely at this conjuncture where Maker requires its workforce to reorganize into Endgame-ready entities. We believe it is a much needed Governance catalyst to enable the ground-breaking work demanded by the Endgame.

This MIP does not impact any currently approved budgets at MakerDAO. The utilization of this framework for current or future budgets is optional. This framework is being introduced as a further tool for the DAO to use as deemed fit.

## Specifications / Proposal Details

### MIP97c1: The DAO-level Objective Framework

The DAO-level Objective (DLO) Framework furnishes governance with powerful alignment tools to (1) consistently define and broadcast what works/projects the DAO needs done and (2) pair these with agreeing, undertaking workforce (internal or external to MakerDAO) through MIP98: The Work Proposal Framework.

DLOs (see MIP97c2) can be drafted and submitted for Maker Governance consideration by any individual. DLOs are subject to Maker Governance approval; they enter the monthly governance cycle and follow specific governance cycle parameters (see MIP97c4).

Note that the introduction of this framework does not proscribe other ratified funding mechanisms (e.g., MIP40, MIP55). However, we do believe this framework is better suited to current times and encourage its joint use with MIP98: Work Proposal Framework as the primary funding mechanism for the DAO.

Although we anticipate objections and wariness that the introduction of a further framework will increase Governance overhead, we believe that proper utilization (distillated in best practices in MIP97c3) of the framework will outweigh any possible drawbacks by streamlining funding requests and creating richer engagement with the workforce.

Note that best practices may not apply to all cases all the time --- deviating from them can indeed be the smart thing to do sometimes. The DLO Framework recognizes this and is therefore flexible, allowing for bespoke DLO configurations.

Finally, component MIP97c5 is used for both tracking and retrospective archival purposes.

## MIP97c2: The DAO-Level Objective Proposal (DLO)

A DLO is a defined opportunity or project that serves as a request from MakerDAO to workforces (either internal or external to MakerDAO) to deliver well-defined work. The objective and deliverables are defined using a top-down approach. DLOs allow Governance to provide clear expectations of available funding, desired reporting details, timelines, and other specific DLO parameters detailed below.

DLOs must follow the [DLO template](https://hackmd.io/gdrU2YpnSFetobcud6c83g), which includes the following sections:

**1. Sentence Description of the Objective**: A one-sentence, short description of the Objective.
**2. Paragraph Description of the Objective**: A long-form description of the Objective. This section should describe (1) the origins of the objective, (2) the future state of the DAO once the objective is achieved, (3) and (if any) known challenges the DAO has faced previously related to the objective.
**3. List of Deliverables**: A well-defined and obtainable list of deliverables. Deliverables are quantifiable byproducts of work. Deliverables may or may not be subject to Maker Governance approval upon delivery. Deliverable parameters are defined in the next (4th) point.
**4. Desired Timeline and Milestones for Delivery**
* **Timeline**: An Objective may require a specific timeline for delivery. This section defines the desired timeline for a DLO's Deliverables. This is defined as a number of months and is set for the overall DLO. 
* **Milestones**: Milestones dictate operational parameters for Deliverables. Milestones must be defined for all Deliverables listed in the previous (4th) point. Milestones can be used to build budget distributions and reporting requirements, to define the order for completing Deliverables, etc.

**5. DLO Parameters**: These are specific parameters that DLO authors can utilize to tailor the DLO to diverse circumstances and opportunities.
* **Maximum Number of Workforce Teams**: A DLO is designed to enable one or more teams to deliver work. The number of workforce teams can be set to _unlimited_, with the Budget Cap utilization by approved Work Proposals being the practical limit in that case.
* **Workforce Team Requirements or Restrictions** - This parameter defines any desired requirements or restrictions for a Workforce Team to be considered eligible for the DLO. Any requirements should be easily verifiable, ideally using a methodology that protects the workforce's anonymity. 
* **DLO Expiry** - Once a DLO is approved by Governance, the DLO becomes active and workforce teams can request assignment of the work through a [Work Proposal (MIP98)](https://forum.makerdao.com/t/mip97-the-work-proposal-framework/19391). It is expected that larger, more complex projects may require some period of time for a Work Proposal to be submitted and accepted. It is also expected that some DLOs may require immediate action. To manage the overhead of the lifecycle of DLOs, they are required to have a defined Expiry, also defined in months. The expiry of a DLO does not impact accepted Work Proposals, it simply prevents new Work Proposal submissions and/or assignments of DLOs to workforce teams.
**6. Budget Cap** - A DLO must define the overall budget that Maker Governance commits to accomplishing the DLO. Both Dai and MKR are in-scope as appropriate types of capital for funding. 

## MIP97c3: Standard DAO-Level Objective Proposal (DLO) Parameters

```!!! WIP !!!```

## MIP97c4: Governance Cycle

DLO submissions follow the below governance cadence:

* RFC Period: `2 weeks minimum`
* Formal Submission: `Any time after the RFC period has passed`
* Frozen Period: `2 weeks following Formal Submission`
* On-chain vote: `1 week`

The voting parameters for a DLO on-chain vote are:

* Abstain
* Approve
* Reject

## MIP97c5: DLO Tracking

This component is used for tracking the status of Approved DLOs through their defined life cycle. A MIP editor must update this MIP following a successful on-chain vote. 
* The DLO # is an index number that increments by 1 for every approved DLO. This is done to increase the ability for discussion on the proposal by assigning an easier-to-communicate index to it instead of the standard subproposal nomenclature.
* **Open** status defines a work proposal as approved, but it either does not have any active teams assigned to the delivery of the DLO, or the DLO still has a remaining budget or the assigned teams for delivery are still below the remaining defined maximum in the DLO parameters (point 3 of MIP97c3).
* **Active** status defines a DLO that is assigned to a team(s) for delivery.
* **Closed** status defines a DLO that has reached expiry and cannot be assigned to any new teams.
* Status can be hyphenated to denote open-active (meaning it has a team assigned, but still has available capacity for more teams to contribute) or closed-active (meaning the DLO is not accepting new teams but the DLO is still being delivered by an assigned team).

A sample entry is provided below:

```
DLO # - Short Description
Status: Open/Active/Active/Closed
Expiry Date: YYYY-MM-DD
```

### DLO Tracking Entries: