{
"A.3.5":{
“Name”: “Aligned Voter Committees - GOV5”

“Content”:"AVC are standardized Voter Committees made up of Alignment Conservers that hold MKR and participate in the Maker Governance process as actors that are deeply aligned with MKR holders. They are subject to specific requirements, and receive various benefits, resources, and support from the Support Scope. They have significant formal powers, but no direct physical power, making them well-suited to be in control and making key decisions during normal conditions.
AVCs focus on making sure that the day-to-day Letter of the Rules of the scopes are aligned with the spirit of rules and Universal Alignment. The AVCs impact on Maker Governance is to make marginal improvements to the Alignment Artifacts that strengthen them. As AVCs make detailed Universal Alignment interpretations, they must all follow a particular Strategic Perspective that informs their subjective definition of Universal Alignment.

AVC are the actors in the broader aligned structure that have the most direct alignment with MKR holders, and thus Dai holders and the broader key stakeholders of the ecosystem. This makes AVCs able to act as an important check on the governance process by monitoring the Spiritual Alignment of the Aligned Structure, and identify and act to deal with inner alignment deviations between Universal Alignment and Incentivized Alignment.

AVC act through proposing modifications to the Scope Artifacts.
This gives them the most impactful input on how to correct alignment gap or incentive slack issues in the Alignment Artifacts, by modifying the Scope elements to ensure incentivized alignment maps as closely as possible to Universal Alignment.

It is important that AVC always act with proper importance towards safeguarding and optimizing long term alignment artifact strength, as it is their most critical duty. Deprioritizing this duty for the benefit of other aims is severe misalignment.

As a general rule, AVC are restricted from being prescriptive and self-justifying in their approach to Alignment Artifact strengthening. This is to prevent them from micromanaging and using the guise of Alignment Artifact strengthening to cause misalignment. GOV5 must specify principles and processes for FacilitatorDAOs to review and act if AVCs are at risk of micromanagement and misalignment.

There must always be clear justification for all Alignment Artifact strengthening proposed by AVC, ensuring that the processes and mechanisms they put in place are Universally Aligned, open, neutral, fair, and long-term beneficial to MakerDAO.

The Alignment Artifact strengthening work of AVC must properly take into account and justify its impact on Future Alignment Risk of the AVC.

The core task of AVC is the quarterly creation of an up to date ratified Aligned Aligned Governance Strategy and up to date ratified Aligned Scope Proposals for each of the 5 Scopes.

The Aligned Governance Strategy is a document that instructs AD in how to vote with the votes of their Governance Strategy Link to the specific AVC.

The first paragraph of the Aligned Governance Strategy is the AVC Profile, which can be up to 280 characters long. The AVC Profile is displayed in the EGF and other important Maker Governance interfaces when describing the AVC. AVCs must have easy to understand Profiles, and their governance actions must be congruent with their AVC Profile. The AVC Profile must, as its first sentence, describe where the AVC aims to be on the Hawk, Dove, Balanced spectrum.

Hawkish AVC tend to prefer higher spreads and lower budgets, focusing more on short term income and asset accumulation. Dovish AVCs tend to prefer lower spreads and higher budgets, focusing more on long term growth and innovation. Balanced AVCs try to find a middle ground between the two. The Hawk, Dove, Balanced spectrum is a continuous spectrum, so many different hawkish or dovish AVCs can exist that are more or less Balanced.

The Aligned Scope Proposals are documents that describe the desired updated state of each of the Scope Artifacts. The Aligned Scope Proposals are often created based on a starting point developed by Scope Advisory Councils, where the AVC then apply and communicate their unique strategic perspective.

For Aligned Governance Strategy and Aligned Scope Proposals to be valid, they must be posted on the AVC communication channels, and have a hash of its contents ratified through a successful AVC Decision.

AVC must always be able to articulate their Strategic Perspective in their AVC Profile in a simple enough way that EGF users can reasonably understand what delegating their votes to the strategy of the AVC means. This is in terms of the Aligned Governance Strategy and the Aligned Scope Proposals that the AVC will create.

New AVC can become recognized as Active AVCs by the Governance Scope if they fulfill the AVC eligibility requirements for participation and internal governance for at least one full quarterly governance cycle. If at any time after becoming recognized as an Active AVC, the AVC no longer completely fulfills all of the eligibility requirements, it immediately loses its recognition as an active AVC and all associated benefits.

Before creating an AVC, an Alignment Conserver must verify as an unaffiliated Alignment Voter Committee Member through a process specified in GOV5.

To remain Active, an AVC must follow a standardized internal governance process for determining membership, creation of Aligned Governance Strategy, Aligned Scope Proposals and other decisions.

AVC Members vote on AVC decisions based on their relative ownership of verified MKR. A vote takes one week and resolves with acceptance or rejection based on the amount of verified MKR that votes for each option, unless a simple majority is reached in which case the decision is accepted or rejected instantly.

New AVC Members are included based on an application that is either accepted or rejected through an AVC decision. The effective verified MKR of members is specified in their application, and can only be increased or decreased through another application that must be accepted by another AVC decision. The effective verified MKR of the creator of an AVC is determined when they create the AVC. If an AVC Member’s blockchain account has MKR in excess of their effective verified MKR, they don’t gain additional voting power in the AVCs internal governance process, but it does count towards AVC rewards qualification. If an AVC member's blockchain account has less MKR than their verified amount, they are automatically removed from the AVC.

Existing AVC Members can be removed through an AVC decision.

A minority quorum of AVC Members based on verified MKR can trigger an AVC split. GOV5 must specify the minority quorum to ensure it serves its role well. All AVC Members then vote to support one of two new AVCs, with the naming rights and infrastructure inherited by the side with more MKR in support. The AVC Members of each of the two new AVCs is determined based on who voted to support each side. The Aligned Governance Strategy Links from AD are divided proportionally into two new Protocol Delegation Contract, each containing an amount of delegated MKR that is proportional to the MKR in support for each side of the AVC split.

AVC Subcommittee Meetings must be scheduled through an AVC Decision.

An AVC must, through an AVC decision, create a legitimate Aligned Scope Proposal for each of the 5 Scopes, each quarterly governance cycle. AVCs must also convene 2 scheduled AVC Subcommittee Meetings to discuss the creation of the Aligned Scope Proposals for each of the 5 Scopes, each quarterly cycle.

The AVC Subcommittee Meetings must be held during the first ten whole weeks of each quarter, in the following order:
Week 1: Governance Scope
Week 2: Support Scope
Week 3: Protocol Scope
Week 4: Stability Scope
Week 5: Accessibility Scope
Week 6: Governance Scope
Week 7: Support Scope
Week 8: Protocol Scope
Week 9: Stability Scope
Week 10: Accessibility Scope

AVC must represent the interest of MKR holders, and cannot represent or be closely affiliated with an external entity. AVCs must always operate with awareness of members’ conflict of interest and take all reasonable steps to make sure that their alignment is preserved. GOV5 must specify ways to deal with this risk.

AVC must vote according to their strategic perspective. Clearly voting against the stated strategic perspective is misalignment and GOV5 must specify ways to detect and deal with this possibility.

A key objective of AVC is to act as reliable, aligned sources of opinions about which decisions are in MKR holders’ interest, given a particular strategic perspective of Maker Governance. This allows them to enfranchise MKR voters that are participating through the EGF to earn governance participation incentives.

AVC must limit their participation in Maker Governance to the creation of Aligned Governance Strategy and Aligned Scope Proposals that function resiliently based on open, objective processes and stay at a high enough level to ensure micromanagement isn't possible. AVCs must not attempt to create biased or unfair conditions for specific Ecosystem Actors, or attempt to put in place unjustified, granular decisions directly, or indirectly through biased processes. GOV5 must specify processes in which AVCs are deactivated and their members derecognized in case there is clear misalignment risk.

Any attempt by AVC to micromanage governance significantly increases the risk of misalignment as there could easily be a hidden conflict of interest behind the attempt at micromanagement.

A AVC receives support and infrastructure from the Support Scope, specified in SUP2

AVC Members that participate in an AVC can be eligible for AVC Member participation reward that recognizes the time they are spending to support Maker Governance.

The AVC Member participation compensation is paid out based on full participation within each scope every quarter. To qualify for the participation reward for a particular Scope the AVC Member must:

Have attended the two AVC Subcommittee Meetings and be co-author on the AVC Aligned Scope Proposals.

Be a co-author on the Aligned Governance Strategy.

GOV5 must specify minimum standards of work and contribution based on best practice to prevent spam or inferior outlier AVC from qualifying for rewards.

The yearly total AVC Member participation rewards is 10 million NewGovToken. This amount is broken into tranches of 500000 NewGovToken for each Scope per quarterly governance cycle, and shared across the reward slots for that Scope.

The number of rewards slots for each tranche is equivalent to the total amount of PD and RD.

The reward slots of a tranche are awarded to the AVC Members that have fulfilled the participation requirements for the tranche and have the highest verified MKR balances.

AVC are shown on a ranked list on the landing page of the EGF, with name and AVC Profile displayed alongside their logo. The ranked list is determined based on the highest total voter weight of the AVCs.

Total voter weight is calculated based on total undelegated or self-delegated, verified MKR holdings of members of the AVC plus total amount of MKR delegated to GSL to the AVC"

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