# Introduction

After working on it for almost a year, it is time to finally put the Endgame Plan to a vote. I'm planning to submit a number of MIPs for the October cycle to kick this off.

## What MIPs to expect

This post gives an overview of the **Endgame Approval MIP Set** that will be proposed on the forum before next Wednesday. Together, if all of them are approved (Except the optional LDO OTC swap MIP), they will trigger the Endgame Plan Pregame phase according to the [**Endgame Plan v3 Overview**](https://forum.makerdao.com/t/endgame-plan-v3-complete-overview/17427) forum post.

The MIPs will be posted as soon as possible, and most of them will not be submitted to RFC in their final shape, but just to ensure their inclusion in the October Governance cycle. There's a lot of technical requirements to make them completely ready and eligible for voting in October, so help will be appreciated from Delegates and others who wish to participate.

# 1. Recognized Launch MetaDAO Clusters
This MIP aims to normalize the preliminary efforts that are currently underway by some of the members of the Decentralized Workforce to "cluster" and prepare small coherent teams that could onboard to act as the internal decentralized workforce for the 7 Launch MetaDAOs of the Endgame Plan.

There are currently 7 high quality clusters being developed, and as a result the Endgame Plan will prepare for the creation of 7 MetaDAOs at Endgame Plan Launch.

* This MIP will establish the 7 Recognized Launch MetaDAO Clusters
* These are preliminary teams headed by an Incubating MetaDAO Facilitator that are authorized to use their resources in the Core Units to make preparations for onboarding proposals to the Launch MetaDAOs
* The Recognized Launch MetaDAO Clusters consists of 3 Creators, 2 Protectors and 2 Governors.
* A Recognized Creator Cluster will be attached to the DECO Core Unit. This means the resources of the DECO Core Unit will transfer to the MetaDAO that onboards the Cluster at Endgame Plan Launch.
* A Recognized Protector Cluster will be attached to the Strategic Finance Core Unit. This means the Strategic Finance Core Unit can use its governance powers to onboard RWA collateral that will be adopted by the Protector Cluster. Additionally, Strategic Finance will also use its governance powers to onboard RWA collateral on behalf of the other Recognized MetaDAO Launch Cluster
* The remaining 5 Recognized Launch MetaDAO Clusters will not attach to Core Units and instead informally operate within the existing Core Unit structures until their onboarding proposal to a MetaDAO at Endgame Plan Launch.
* 7 Forums and 7 Discord channels will be launched to enable the MetaDAO communities to begin their own clustering process, self-selecting the Internal Clusters to match with the most suitable communities.

# 2. MIP0 Endgame amendment
The amendment process will be used to make MIP0 "Endgame-ready". The main change is to make the RFC period of MIPs longer (3 months at first), but with Endgame Plan Launch MIPs specifically exempted.

The secondary change is to deprecate almost all active MIPs, significantly cleaning up the MIPs and changing the way Maker Governance works to primarily work through Facilitator Governance Powers. For instance, this will completely deprecate and disable the MIP6 collateral onboarding process, and the signal request process, and many other MIPs that currently steer processes but often in ways that are different from how they were designed, and in many cases completely forgotten.

* MIP0 will be amended using the MIP4 process
* The RFC period for all MIPs will be changed to 3 months
* The Endgame Plan Launch MIP Set is exempted, and has an RFC period of only 1 month
* * All MIPs will be categorized as either `Legacy` or `Endgame` MIPs
* Legacy MIPs will generally be deprecated and not in effect, but Governance Tribunal members can choose to temporarily activate them and follow their process in individual cases if it's deemed necessary to fill a gap emerging during the transition to the Endgame MIPs.
* After 4 years Legacy MIPs will become completely deprecated and no longer useable for anything other than historical precedent.
* Endgame MIPs will continue to be active as now.
* Of the existing MIPs, these will convert to Endgame MIPs: MIP0, MIP4, MIP38, MIP39, MIP40, MIP41 (+ others, still needs to be filled out)

# 3. Optional LDO to MKR Swap MIP
This MIP is completely optional, if it is rejected it doesn't impact the approval of the Endgame Plan. The proposal is to swap 20 million LDO from my holding company for MKR in the Maker Pause Proxy at a large discount (around 33%) in Maker's favor. At current prices this would be a swap of approximately 40 million USD of LDO for 26.7 million USD of MKR.

LDO has 3-5x the liquidity of MKR and is currently one of hottest tokens among smart money, and it is extremely hard to get ahold of large allocations. I'm making this highly beneficial, optional deal available to Maker Governance because I believe in the public good potential of Maker and the Endgame Plan and want to show my own willingness to contribute to make it work.

I also believe that Maker owning a large LDO stake is a crucial boost to the success potential of the Endgame Plan and helps make a lot of the economic dynamics come full circle early on.

The Endgame Plan focuses on maximizing usage and accumulation of EtherDai, which during the first several years is a wrapped version of Lido Staked ETH. If Maker also holds LDO, then Maker gets to benefit massively from the significant Lido Staked ETH adoption that the Endgame Plan will cause.

The 40 million USD of LDO can be used as liquid, decentralized starting collateral for the Protocol Owned Vault (unlike MKR, which cannot be used as collateral by Maker itself), establishing a much stronger starting position for the protocol to accumulate large amounts of decentralized collateral. This is further explained below, in the section about the Protocol Owned Vault.

Additionally, if my holding company obtains a large additional stake of MKR in connection with the Endgame Plan that shows my commitment and belief in the value of MKR, which should signal confidence to other stakeholders on the sidelines. As always I will continue to work on the project for free with no other motivation needed than my existing MKR stake.

Obtaining additional MKR also increases my voting power further (back to about the ATH amount of MKR I've had in the past) which will help lock in the irreversibility of the Endgame Plan by ensuring a hidden coalition of MKR voters cannot overturn the Endgame Plan after it has already been triggered by the approval of the Endgame Plan Approval MIP Set. This will help establish greater certainty and remove potential for disruption for the workforce during the difficult transition period

As stated above, this MIP is optional, but even if it is rejected I believe the fact that I made the proposal at all is critical for establishing a strong and positive meta of the Endgame Plan, as there can then be no bad feelings about how I will potentially personally benefit from the significant adoption of Lido Staked ETH the Endgame Plan will cause, due to my significant LDO holdings through my holding company.

* This MIP establishes an OTC deal between Maker and Rune's holding company.
* If the MIP is approved, Maker Governance commits to send MKR from the Pause Proxy after receiving LDO from Rune's holding company to a predetermined Ethereum Address.
* The transfers will be in two rounds, with the first swap of about 75% of the amount done immediately following the successful vote, and the second swap of the remaining 25% happening around December 17 (due to remaining vesting periods).
* The exact rate of the swap will be locked at the moment the vote ends successfully. It will be determined based on a formula that gives a higher discount to Maker if MKR is lower is relative to LDO, and a lower discount if MKR is higher relative to LDO.
* At current rates (LDO @ 2 USD and MKR @ 800 USD) the discount will be approximately 33% in Maker's favor.

# 4. Collateral Onboarding Special Mandates

One of the biggest impacts of the Endgame Plan Approval MIP Set is that it will completely change collateral onboarding in Maker, most notably by shutting down the MIP6 process (by turning it into a Legacy MIP), which will as a consequence effectively reject all active MIP6 applications, or any other kind of external collateral onboarding application.

Instead all collateral onboarding can only be done "inside-out" based on the conscious priority and decision by a Core Unit Facilitator, and they will have no obligation to honor the massive governance debt the old collateral onboarding processes have accumulated over time, unless they consider it to be in the best interest of Maker.

Dealing with the unsustainable nature of the old collateral onboarding process is a key step to cleaning up Maker Governance and moving past bad decisions and organizational debt that has accumulated due to the over complex nature of Maker Governance. By formally cleaning up and ending the ever-growing pile of collateral onboarding backlog, Maker Governance will be able to give more clear signals and set realistic expectations to external partners about their chances of getting onboarded to the Maker Protocol.

## 4.1 Temporary RWA Collateral Onboarding Mandate amendment for Strategic Finance Core Unit
As the Endgame Plan Approval MIP Set offboards the RWF core unit in order to reboot Makers Real World Asset efforts, restructured based on the Protectors and the Protector Clusters, it is critical that action is taken to ensure continuity of important RWA efforts in the meantime, especially as the Endgame Plan emphasizes the importance of growing revenues that can be used to fund the Protocol Owned Vault as quickly as possible. The proposal is to use the Strategic Finance Core Unit which is also has a Protector Cluster attached to it, as the temporary solution that allows RWA work to continue, and improves it by removing red tape and unnecessary bureaucracy that currently exists.

In practice the degree that this power is used should be limited to cashlike RWA that can deliver immediate, scalable, low risk yield, and to do strategic RWA deals with Arrangers that are clustering to one of the two Protectors, in the interest of supporting the momentum of the Protectors.

* This is a subproposal MIP to the Strategic Finance Core Unit Mandate
* It authorises the Strategic Finance Core Unit to temporarily make RWA onboarding proposals at will that help facilitate the Endgame Plan and the Protector Clustering.
* The Strategic Finance Core Unit needs to follow best practice and obtain adequate assesments from relevant experts, such as legal and credit risk, when it is relevant.
* Collateral onboarding is prioritized by the Facilitator solely based on what they consider in the best interest of Maker, without having to adhere to an external prioritization process.
* This power is useable by the Strategic Finance Facilitator without requiring any process or bureaucracy beyond the judgement of the Facilitator.

## 4.2 Collateral Onboarding Mandate amendment for Risk Core Unit
In order to ensure continuity, as well as simplification, of collateral onboarding, the mandate to prioritize collateral onboarding and propose collateral onboarding governance polls and executive votes is added to the Risk core unit for the limited types of Collateral that are permissible in Maker Core in the Endgame Plan, including ETH and ETH related collateral, major Altcoins, D3Ms, and PSMs

* This is a Subproposal to the Risk Core Unit Mandate
* It authorises the Risk Core Unit to make collateral onboarding proposals that relate to ETH, or ETH-derived collateral (such as LP tokens or Staked ETH), Major Altcoins (with a revenue potential of at least 1 million per year), D3Ms, and stablecoin PSMs
* The Risk Core Unit needs to follow best practice and obtain adequate assesments from relevant experts, including smart contracts and oracles when it is relevant.
* Collateral onboarding is prioritized by the Facilitator solely based on what they consider in the best interest of Maker, without having to adhere to an external prioritization process.
* This power is useable by the Risk Facilitator without requiring any process or bureaucracy beyond the judgement of the Facilitator.

# 5. Protocol Owned Vault Emulation activation
The Protocol Owned Vault is a key element of the Endgame Plan that helps achieve real resilience and decentralization by increasing the amount of Dai backed by Staked ETH. It is crucial to begin accumulatinng protocoled owned Staked ETH as quickly as possible, because this will enable the protocol to buy at a slower pace, reducing the risks of the activity. The Protocol Owned Vault Emulation means using the ability of surplus buffer to have negative lower limit to emulate a Protocol Owned Vault, and this way enable Maker Governance to immediately begin accumulating Staked ETH without requiring any new technology.
* This MIP will activate the Protocol Owned Vault Emulation
* The Protocol Owned Vault Emulation will be manually administered by the Strategic Finance Core Unit through proposals to Maker Governance
* 40 million Dai from the Surplus Buffer will be used as starting collateral for the Protocol Owned Vault
* If the optional LDO Swap MIP is approved, the starting collateral will be a total of 76 million USD worth of assets.
* The collateralization ratio of the protocol owned vault is 225%, equivalent to 1.8x leverage(?)
* This means the protocol owned vault will have a debt of 60 million initially, which is emulated by setting the lower limit of the Surplus Buffer to -60 million.
* 100 million Dai (40 millionn starting collateral + 60 million debt) is transferred from the Surplus Buffer to the Pause Proxy.
* The 100 million Dai is used to accumulate Lido Staked ETH at a rate of 500,000 Dai per day.
* Strategic Finance will have the temporary responsibility to monitor and propose halting or changing the parameters of the Protocol Owned Vault accumulation strategy with no delay (can be done directly with governance poll followed by executive vote)

# 6. Budget Reduction

### 6.1 Strategic happiness offboarding
* MIP to offboard Strategic Happiness Core Unit with standard severance bonus

### 6.2 Events offboarding
* MIP to offboard Events Core Unit with standard severance bonus

### 6.3 Real World Finance offboarding
* MIP to offboard Real World Finance Core Unit with standard severance bonus

### 6.4 Future Reductions
* This item is not a MIP, but by approving the Endgame Plan MIP Set the community signals its intention to significantly reduce the recurring budget of Maker Core, with a soft aim of reaching less than 22.5 million per year (a 50% reduction from current levels of 45 million). This will be achieved by reorganizing core units into MetaDAOs that will have to earn their own income (Which is already covered by the Recognized Launch MetaDAO Clusters specified above), or letting go of contributors aren't needed to directly work on any of the key priorities of the Endgame Plan or the Launch MetaDAOs.