---
# System prepended metadata

title: 'Episode #201: July 28<sup>th</sup>, 2022'
tags: [G&R]

---

---
tags: G&R
---

# Episode #201: July 28<sup>th</sup>, 2022

## Agenda

- [00:00](https://youtu.be/ADYHWUbFUKw): Introduction
- [02:32](https://youtu.be/ADYHWUbFUKw?t=152): Votes and Polls
- [04:29](https://youtu.be/ADYHWUbFUKw?t=269): MIPs Update
- [08:48](https://youtu.be/ADYHWUbFUKw?t=528): Weekly Forum Recap
- [13:33](): Discussion: Budget Re-allocation & Core Unit Accountability Framework
- [27:06](https://youtu.be/ADYHWUbFUKw?t=1626): Discussion: Q&A 
- [1:05:35](https://youtu.be/ADYHWUbFUKw?t=3935): Conclusion

## Video

[Link](https://youtu.be/ADYHWUbFUKw)

## General Updates

### Votes

#### Payton Rose

> *Polls:* -- [2:32](https://youtu.be/ADYHWUbFUKw?t=152)
> *Executive Votes:* -- [3:05](https://youtu.be/ADYHWUbFUKw?t=185)

### MIPs

#### Pablo

[4:29](https://youtu.be/ADYHWUbFUKw?t=269)

[Weekly MIPs Update #97](https://forum.makerdao.com/t/weekly-mips-update-97/16816)

![](https://i.imgur.com/UBXVhZy.png)

> - July's Formal Submissions -- [4:34](https://youtu.be/ADYHWUbFUKw?t=274)
> - _Proposals in RFC_ -- [4:53](https://youtu.be/ADYHWUbFUKw?t=293)
> - _Core Unit Budgets_ -- [5:44](https://youtu.be/ADYHWUbFUKw?t=344)
> - _Core Unit Offboarding_ -- [6:21](https://youtu.be/ADYHWUbFUKw?t=381)
> - _Facilitator Onboarding_ -- [6:45](https://youtu.be/ADYHWUbFUKw?t=405)
> - _Amendments_ -- [7:09](https://youtu.be/ADYHWUbFUKw?t=429)
> - _Special Purpose Fund_ -- [7:49](https://youtu.be/ADYHWUbFUKw?t=469)

> :mag_right: Important Dates:
> - The August FSW opens on Monday 1. 
> - August Ratification Polls will go up on Monday 8.

### Weekly Forum Recap

#### Artem Gordon

[8:48](https://youtu.be/ADYHWUbFUKw?t=528)

_Post:_ [Weekly Forum Recap July 21<sup>st</sup> - 27<sup>th</sup>, 2022](https://forum.makerdao.com/t/weekly-forum-recap/16247) 

- _**News & Announcements:**_ 
    - [Codeknight Delegate
Platform](https://youtu.be/ADYHWUbFUKw?t=574) 
    - [Short take: Exciting news and
opportunity for RWA teams](https://youtu.be/ADYHWUbFUKw?t=618) 
    - [Short take: return of excess funds (~2M DAI)](https://youtu.be/ADYHWUbFUKw?t=651)]

- _**Signal Requests:**_
    - [[SIGNAL REQUEST] Budget Re-allocation & Core Unit Accountability Framework](https://youtu.be/ADYHWUbFUKw?t=670)

## Discussion

### Budget Re-allocation & Core Unit Accountability Framework

#### Thomas Flitter

[13:33](https://youtu.be/ADYHWUbFUKw?t=813)

![Budget Re-allocation & Core Unit Accountability Framework](https://i.imgur.com/0u74vW0.png)

- Our discussion segment today will be on the Signal Request for the Budget Re-allocation & Core Unit Accountability Framework. Our special guest is Pipco with the Strategic Finance Core Unit, and he will present their information.

[14:08](https://youtu.be/ADYHWUbFUKw?t=848)
- **Pipko:** This is an update to the presentation we gave last week on the Signal Request, about Core Unit accountability, etc. 

![Legal Disclaimer & Preliminary Notes](https://i.imgur.com/4mlcPXS.png)

![Agenda](https://i.imgur.com/n3toB05.png)

![Today's Financial Position](https://i.imgur.com/ifLtfqj.jpg)

![Paths forward to meet MKR holder expectations](https://i.imgur.com/sVLBTTm.png)

![Option 2: Recommended Action Plan](https://i.imgur.com/uZVc6sZ.png)

![Option 2: Benefits of Proposed Budget Allocation Process](https://i.imgur.com/RkCwjJy.png)

![Option 2: Concerns and Mitigants to Proposed Process](https://i.imgur.com/4PCqbwy.png)

![Proposed Budgeting Process](https://i.imgur.com/7Uvp4wo.png)

![Key Performance Indicators (KPIs) for Core Units](https://i.imgur.com/FKVmRYS.png)

![Example: Budget Ask & KPI Proposal](https://i.imgur.com/bxfrbnI.png)

![Example: KPI Evaluation & Attainment](https://i.imgur.com/nQfN2z7.png)


## Discussion

### Q&A

[27:06](https://youtu.be/ADYHWUbFUKw?t=1626)

- **David Utrobin:** If this were to pass and this framework was to be adopted, does that mean that it would be one ultimate budget proposal at the end, and the delegates would take the individual for a unit proposal? And combine them all into one big proposal? And then also, with 20 core units, like the way that the framework is proposed, it seems very heavy because those 24 units have to put up their budgets. Then, they have to get a response from the SF delegates and whoever is working on the counter budget proposals, and there are supposed to be multiple counter budget proposals for each team. Some comments on whether I understand that would be great.

[32:28](https://youtu.be/ADYHWUbFUKw?t=1948)

- **Eric:** I think it is an excellent set of KPI initiatives. You need to set the KPIs realistically or sensibly to get the behavior you want. You want to try to focus on things under your control, and the KPI is that you want to look at perverse behavior. However, when you are doing KPIs, which will be a challenge, they need to be considered carefully. What do people control? Moreover, what are the adverse side effects you could get from them? This would require expertise in ensuring these KPIs are what Maker wants; I think they are great, but it is hard to do this well, particularly in the centralized world.

[35:29](https://youtu.be/ADYHWUbFUKw?t=2129)

- **Someone:** Typically, KPIs get assessed on maybe a monthly or quarterly basis. How would we envision doing it? Do we set the KPIs in August or October? Do we have a meeting monthly or two to discuss where everyone is at on their KPIs? How is that going envisioned?

[38:21](https://youtu.be/ADYHWUbFUKw?t=2301)

- **Sebastien Deveraux:** What I liked is that it puts you under pressure. We deliver something, though; the fact of not achieving it is not the end of the day. In the end, people can say well; you did not achieve it; you should be fired. At least you have something to discuss. Otherwise, I have no idea what people are forecasting to do. Achieving to do, and so there is no discussion. I think it should be with a social wrapper to say, well, we have numbers but numbers on KPIs and not representing everything now just in basis for discussion, because I am not sure that are linked to many implications for cabinet. No one is fired because you are below 20% or something like that.

[40:44](https://youtu.be/ADYHWUbFUKw?t=2444)

- **ElPro:** If you think about what had been KPI is for every single DeFi platform, protocol. Has it been TVL? That is pretty much it. TVL and how much Dai is outstanding? How much fracks is exceptional? How many wallets are holding Dai? I think it is less than a million. How many stablecoins are being held by wallets? There are things I agree with and don't agree with, but I think web3 needs this, and I think Maker DAO is the leading governance platform that can bring this into the Defi into the ecosystem. We should at least give it a shot; if it does not work out, then let us automate it down the road. We are writing the playbook here of governance. 

[48:15](https://youtu.be/ADYHWUbFUKw?t=2895)

- **CodeKnight:** Could you share the overarching KPIs?

[51:23](https://youtu.be/ADYHWUbFUKw?t=3083)

- **CodeKnight:** Is there a path you see where maybe there is a hybrid approach, like you either choose some straight percentage cut to your CU? Or do you follow this KPI model? Do we see a hybrid approach here that is viable?

[54:24](https://youtu.be/ADYHWUbFUKw?t=3264)

- **Robert:** When I look at the effectiveness of a proposed solution, we are walking into this with three areas: what we know, and this is what I will call the agreeable truth. Then we also look at the alignment that we have. Not necessarily agreement, but alignment on, more of strategic goals, objectives, all of that.

## Conclusion

### Payton Rose

[1:05:35](https://youtu.be/ADYHWUbFUKw?t=3935)

[1:06:34](https://youtu.be/ADYHWUbFUKw?t=3991)

- **MakerMan**: My point is pretty simple, you will do all these KPIs; it will cost effort, and you have to add for every effort that you do, you have to look at some return. Many people judge that monetarily; you can judge it maybe as a long term, you can judge it as an efficiency thing, which will hit the bottom line. You ask a basic question; we will make a move; how much is it going to cost us? What do we expect as a return? How are we going to measure it? I always return to that every time and do not see answers; here are many of them.

[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.
