--- tags: G&R --- # Episode #203: August 11<sup>th</sup>, 2022 ## Agenda - [00:00](https://youtu.be/AZfl49_N32I): Introduction - [04:07](https://youtu.be/AZfl49_N32I?t=247): Votes and Polls - [05:29](https://youtu.be/AZfl49_N32I?t=329): MIPs Update - [10:50](https://youtu.be/AZfl49_N32I?t=650): Weekly Forum Recap - [16:30](https://www.youtube.com/watch?v=AZfl49_N32I&t=990s): Initiatives Update: Project Based Budgeting Proposal - [21:36](https://www.youtube.com/watch?v=AZfl49_N32I&t=1296s): Discussion: Tornado Cash and USDC - [1:07:50](https://www.youtube.com/watch?v=AZfl49_N32I&t=4070s): Discussion: Discussion: RWF and RWF0x Split - [1:23:32](https://youtu.be/AZfl49_N32I?t=5012): Conclusion ## Video [Link](https://youtu.be/AZfl49_N32I) ## General Updates ### Votes #### Payton Rose ![](https://i.imgur.com/4zHs1Jt.png) > *Polls:* -- [4:12](https://youtu.be/AZfl49_N32I?t=252) > *Executive Votes:* -- [4:38](https://youtu.be/AZfl49_N32I?t=278) ### MIPs #### Pablo [5:29](https://youtu.be/AZfl49_N32I?t=329) [Weekly MIPs Update #99](https://forum.makerdao.com/t/weekly-mips-update-99/17102) ![](https://i.imgur.com/9f9XUSf.png) ##### Ratification Polls > - _Top Level MIPs_ -- [5:50](https://youtu.be/AZfl49_N32I?t=350) > - _Core Unit Budgets_ -- [6:12](https://youtu.be/AZfl49_N32I?t=372) > - _Core Unit Offboardings_ -- [6:41](https://youtu.be/AZfl49_N32I?t=401) > - _Amendments_ -- [7:01](https://youtu.be/AZfl49_N32I?t=421) ##### Proposals in RFC > - _MIP Sets_ -- [7:20](https://youtu.be/AZfl49_N32I?t=440) > - _Core Unit Onboardings_ -- [8:07](https://youtu.be/AZfl49_N32I?t=487) > - _Special Purpose Funds_ -- [8:29](https://youtu.be/AZfl49_N32I?t=509) > - _MKR Budgets_ -- [8:47](https://youtu.be/AZfl49_N32I?t=527) > - _Core Unit Offboardings_ -- [8:57](https://youtu.be/AZfl49_N32I?t=537) > - _Facilitator Onboarding_--[9:13](https://youtu.be/AZfl49_N32I?t=553) > - _Amendments_ -- [9:26](https://youtu.be/AZfl49_N32I?t=566) > :mag_right: _Important Dates: > Ratification Polls will close on August 22<sup>th</sup>. > The September FSW opens on September 9<sup>th</sup>._ ### Weekly Forum Recap #### Artem Gordon [10:50](https://youtu.be/AZfl49_N32I?t=650) _Post:_ [Weekly Forum Recap: July 4<sup>th</sup> - 10<sup>th</sup>, 2022](https://forum.makerdao.com/t/weekly-forum-recap/16247/5) - _**News & Announcements:**_ - [100 Days to zkSync 2.0 Bridge Deployment](https://forum.makerdao.com/t/100-days-to-zksync-2-0-bridge-deployment/17034) - [Announcing Governance Dashboard v2](https://forum.makerdao.com/t/announcing-governance-dashboard-v2/17159) - [ELI5 DAI Backing](https://forum.makerdao.com/t/eli5-dai-backing/17000) - _**Signal Requests:**_ - [[SIGNAL REQUEST] N6M Target Spend Level](https://forum.makerdao.com/t/signal-request-n6m-target-spend-level/17122) - [[Signal Request] Update MANA vault stability fee to 3%](https://forum.makerdao.com/t/signal-request-update-mana-vault-stability-fee-to-3/17097) > :mag_right: _Reminder: Delegate contracts are expiring._ ## Initiatives Update ### Project Based Budgeting Proposal #### Juan [16:52](https://youtu.be/AZfl49_N32I?t=1012) ![Initiatives Update](https://i.imgur.com/pwVTpBs.png) ![Project-Based/Budget Reallocation/How Core Unit-Based Budgeting is Killing Maker](https://i.imgur.com/mumgbG6.png) ## Discussion ### Tornado Cash and USDC #### Payton Rose [21:33](https://youtu.be/AZfl49_N32I?t=1293) [24:16](https://youtu.be/AZfl49_N32I?t=1669) - **Kianga Daverington:** What is the risk to MakerDAO and participants here for being unable to blacklist Dai if it is traced to sanction wallets or illicit activity? [26:31](https://youtu.be/AZfl49_N32I?t=1591) - **Kianga Daverington:** Why do we think Genesis will no longer convert Dai to USD? [30:20](https://youtu.be/AZfl49_N32I?t=1820) - **Frank Cruz:** Why don't we boycott USDC? [36:58](https://youtu.be/AZfl49_N32I?t=2218) - **Jacob:** If we move into RWA, will we face the same problem with sanctions that we face with USDC that could block us? [38:38](https://youtu.be/AZfl49_N32I?t=2318) - **TJ Ragsdale:** Are we saying that the existential risk of blacklist from USDC is greater than the existential risk of ETH dropping or whatever we invested in dropping? [41:31](https://youtu.be/AZfl49_N32I?t=2491) - **CodeKnight:** What would be necessary if, in the worst case, the government started telling us that we did have to start blacklisting certain addresses? How big of a shift would that require? ## Discussion ### RWF and RWF0x Split [42:58](https://youtu.be/AZfl49_N32I?t=2578) - **ElPro:** 3F delegate has been a proponent of RWAs, and today's news of the Genesis compliance department, doing what they are doing is a big disappointment. Why do we need to build real-world assets or real estate at this point? Why do we need to do things humans can touch with their hands with USD, US dollars, or even euros? I think there is a paradigm shift happening here. We can make a difference. [47:10](https://youtu.be/AZfl49_N32I?t=2830) - **ElPro:** We should cut out the middleman. Why don't we need Genesis in the middle for us to build skyscrapers? Right? [49:30](https://youtu.be/AZfl49_N32I?t=2970) - **Jacob:** These loans we have on real-world assets, while the people are putting up the collateral care about dollars. These are loans that in the vaults are denominated in Dai. When the real-world assets exceed the USD PSM, they ultimately have to go to the market and find someone willing to provide them with Dai, which is why everyone cares about USD. One of those steps is slowly building up that ecosystem where Dai can exist independently of stable coin issuers of Fiat stable coin could Trad five USD stable coin issuers. [55:15](https://youtu.be/AZfl49_N32I?t=3315) - **Chris Blec:** As far as the idea to wind Dai down and potentially try to wind down the project. I said that if we cannot figure out a way to eliminate existential threats, then we should consider winding it down because the existential threats will kill Dai. We have seen it over and over. I have been saying it for years; many people have been saying it for years. It's not illogical to think that the DAO should consider trying to save people and their money if we do not see a clear path to success. I have been trying to say throughout the call that I do not have a clear plan for how to do this. I am somebody who can see the writing on the wall, and I can see that there is an existential threat. The gun is in the hands of third parties that we are not correct, and they have not pointed at us at the DAO. [1:00:42](https://youtu.be/AZfl49_N32I?t=3642) - **Payton:** I see many similarities in how many Maker people were talking about a Luna, and I would certainly like to think that we are not creating this existential bubble. I think it is essential to reflect on this idea that we very similar advice to a competitor when we saw a flaw in their business model and said: you guys should start winding down, shutting it down, figuring out because the way you are going is imploding. [1:01:45](https://youtu.be/AZfl49_N32I?t=3705) - **Asad:** Has it been considered to slowly offboard USDC by just cranking the stability fee over time? And squeezing all the USDC like depositors? [1:06:00](https://youtu.be/AZfl49_N32I?t=3960) - **Raphael**: How can we discern if anything changed from a week ago? I am also of the opinion that we need to move out of USDC. I do not like that existential risk. We are on a past year. Is there anything we can say: because this happened, Maker is at more risk than it was a week ago; I am still not sure that is the case. I have no data to judge that. I would be happy to hear if anyone knows how to judge that. [1:08:46](https://youtu.be/AZfl49_N32I?t=4126) - **TJ?**: We need to figure out what we will tell our partners to include to work with; that is the first thing I think will need to be replaced. I do not see a way around that. Find a suitable replacement. I believe Christian and his team could stay on provisionally. They have been doing the work. If we can find a decent manager with good people skills to watch over this, let that person decide what to do long-term. We need to have something we go to our partners with and say, Hey, this is whom you work with. [1:11:00](https://youtu.be/AZfl49_N32I?t=4260) - **Raphael**: I think the mandate of the DAO is this was Will. All the assets that RWF has been working on are attached to Will - I am still confused about how this works. For me, the most disturbing situation is two parties going out like this and the unclarity of who is responsible for what, and I do not know how you will address that with two parties that are not on talking terms. How will that work? [1:13:34](https://youtu.be/AZfl49_N32I?t=4414) - **Raphael**: We have worked with the mandate, right? You worked on these deals, you have the relationships, but we terminate you. If I imagine that, from a company point of view, we hire a company to do RWF, they come up with the deals, then the company's CEO finances three workers who have been building these relationships. Like in a local company setting, this does not change anything, as long as the company can still deliver. Everything is fine. I am confused about these attachments; altering the relationship diagram here is unclear to me, making it hard for me to decide on the right direction. [1:20:29](https://youtu.be/AZfl49_N32I?t=4829) - **ElPro**: I will agree with just in case that Will should have been more communicative to the community that MKR token owners delegates like; I do think that this is something that Will is up to, obviously, getting his mandate delivered. ## Conclusion ### Payton Rose [1:23:32](https://youtu.be/AZfl49_N32I?t=5012) - I want to thank everyone for coming out. I appreciate the level of discourse and the ideas exchanged; we still have a lot to solve. Luckily, there are a lot of ongoing discussions, the ones we have been having here today; you will see versions of them and perhaps even more in our forum. [Suggestion Box](https://app.suggestionox.com/r/GovCallQs) ## Credits - Kunfu-po produced this summary. - Andrea Suarez produced this summary. - Everyone who spoke and presented on the call.