<h2>
<a name="introduction-1" href="#introduction-1"></a>Introduction</h2>
<p>Welcome to the first edition of The Delegate Round-up, a new monthly update from GovAlpha. The Delegate Round-up aims to provide an overview of the Recognized Delegates operating within Maker Governance. It also serves as a one-stop forum post where members of the Maker Community can monitor how Recognized Delegates are performing.</p>
<p>The Delegate Round-up is a new initiative from GovAlpha. If there is anything else you would like to see added, please send me a message or leave a comment below.</p>
<p>October was a turbulent month for the Recognized Delegates. There was a large re-distribution of delegated MKR towards the end of the month, as well as our first Recognized Delegate stepping down from their duties. GovAlpha would like to thank <a href="/u/planet_x">@Planet_x</a> for his time and effort as a Recognized Delegate and wish him all the best for the future.</p>
<h2>
<a name="recognized-delegates-2" href="#recognized-delegates-2"></a>Recognized Delegates</h2>
<p>At the time of writing, we have five active Recognized Delegates. In descending order of MKR delegated, these are:</p>
<div>
<table>
<thead>
<tr>
<th>Delegate</th>
<th>Delegate Platform</th>
<th>Delegated MKR</th>
</tr>
</thead>
<tbody>
<tr>
<td>FlipFlopFlap Delegate LLC</td>
<td><a href="https://forum.makerdao.com/t/flip-flop-flap-delegate-llc-platform/9106">https://forum.makerdao.com/t/flip-flop-flap-delegate-llc-platform/9106 <span>3</span></a></td>
<td>23903.23</td>
</tr>
<tr>
<td>Feedblack Loops LLC</td>
<td><a href="https://forum.makerdao.com/t/feedblack-loops-llc-delegate-platform/9366">https://forum.makerdao.com/t/feedblack-loops-llc-delegate-platform/9366 <span>1</span></a></td>
<td>10102.26</td>
</tr>
<tr>
<td>Field Technologies Inc.</td>
<td><a href="https://forum.makerdao.com/t/paperimperium-delegate-platform/8992">https://forum.makerdao.com/t/paperimperium-delegate-platform/8992</a></td>
<td>8511.07</td>
</tr>
<tr>
<td>monetsupply</td>
<td><a href="https://forum.makerdao.com/t/monetsupply-delegate-platform/9545">https://forum.makerdao.com/t/monetsupply-delegate-platform/9545 <span>2</span></a></td>
<td>5139.34</td>
</tr>
<tr>
<td>MakerMan</td>
<td><a href="https://forum.makerdao.com/t/makerman-delegate-platform/9891">https://forum.makerdao.com/t/makerman-delegate-platform/9891 <span>1</span></a></td>
<td>5061.75</td>
</tr>
</tbody>
</table>
</div><p>This table will also track monthly changes in MKR amounts delegated to the Recognized Delegates in future months.</p>
<h3>
<a name="recognized-delegates-visualized-3" href="#recognized-delegates-visualized-3"></a>Recognized Delegates Visualized</h3>
<p></p>
<p></p>
<h2>
<a name="delegate-metrics-4" href="#delegate-metrics-4"></a>Delegate Metrics</h2>
<p>GovAlpha tracks metrics that monitor Recognized Delegate performance. These are useful to both current and prospective delegators in gauging how active Recognized Delegates have been. The metrics currently tracked for Recognized Delegates center on Participation in on-chain voting and communication by Recognized Delegates regarding their voting choices.</p>
<h3>
<a name="participation-5" href="#participation-5"></a>Participation</h3>
<p>For Participation, a score of 100% would mean that a Delegate has voted in all possible polls since they started their role as a Recognized Delegate. GovAlpha tracks Participation in Governance Polls and Executive Polls separately and as a combined overall participation rating.</p>
<p>At the time of writing, the Delegate Metrics for Participation are as follows:</p>
<div>
<table>
<thead>
<tr>
<th>Delegate Name</th>
<th>Poll Participation</th>
<th>Executive Participation</th>
<th>Overall Participation</th>
</tr>
</thead>
<tbody>
<tr>
<td>FlipFlopFlap Delegate LLC</td>
<td>100%</td>
<td>100%</td>
<td>100%</td>
</tr>
<tr>
<td>Feedblack Loops LLC</td>
<td>86%</td>
<td>100%</td>
<td>87.72%</td>
</tr>
<tr>
<td>Field Technologies Inc.</td>
<td>98.04%</td>
<td>100%</td>
<td>98.25%</td>
</tr>
<tr>
<td>monetsupply</td>
<td>83.67%</td>
<td>50%</td>
<td>80%</td>
</tr>
<tr>
<td>MakerMan</td>
<td>84.09%</td>
<td>40%</td>
<td>79.59%</td>
</tr>
</tbody>
</table>
</div><h3>
<a name="communication-6" href="#communication-6"></a>Communication</h3>
<p>For Communication, GovAlpha tracks how Recognized Delegates have communicated their voting decisions. Recognized Delegates are rewarded with a higher score for providing reasoning for their voting decisions. For example, a score of 100% would mean a Delegate communicated all of their voting decisions AND gave reasons for reaching these decisions. On the other hand, a score of 50% would indicate a Delegate communicated their decisions but did not provide any reasoning for these decisions. Their scores for each vote are combined to give an overall communication rating.</p>
<p>At the time of writing, the Delegate Metrics for Communication are as follows:</p>
<div>
<table>
<thead>
<tr>
<th>Delegate Name</th>
<th>Overall Communication</th>
</tr>
</thead>
<tbody>
<tr>
<td>FlipFlopFlap Delegate LLC</td>
<td>100%</td>
</tr>
<tr>
<td>Feedblack Loops LLC</td>
<td>80%</td>
</tr>
<tr>
<td>Field Technologies Inc.</td>
<td>90.57%</td>
</tr>
<tr>
<td>monetsupply</td>
<td>73.17%</td>
</tr>
<tr>
<td>MakerMan</td>
<td>89.74%</td>
</tr>
</tbody>
</table>
</div><h2>
<a name="executive-votes-7" href="#executive-votes-7"></a>Executive Votes</h2>
<p>By looking at how long it takes for an Executive Vote to pass, we can infer whether or not the Recognized Delegates are helping streamline the Governance Process.</p>
<p>In October, the Governance Facilitators posted four Executive Votes to the voting portal. All four of these votes passed successfully.</p>
<div>
<table>
<thead>
<tr>
<th>Executive Vote</th>
<th>Date Posted</th>
<th>Date Passed</th>
<th>Duration (Days)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Offboarding USDT Collateral, Core Unit Budget Distributions</td>
<td>2021-10-01</td>
<td>2021-10-02</td>
<td>1</td>
</tr>
<tr>
<td>Offboarding Vaults, MKR Vesting, and Core Unit Budget Distribution</td>
<td>2021-10-08</td>
<td>2021-10-09</td>
<td>1</td>
</tr>
<tr>
<td>Parameter Changes, WSTETH-A Onboarding</td>
<td>2021-10-22</td>
<td>2021-10-26</td>
<td>4</td>
</tr>
<tr>
<td>Aave D3M Onboarding and Core Unit Budget Transfers</td>
<td>2021-10-29</td>
<td>2021-10-31</td>
<td>2</td>
</tr>
</tbody>
</table>
</div><h2>
<a name="delegate-on-boarding-8" href="#delegate-on-boarding-8"></a>Delegate On-boarding</h2>
<p>In October, GovAlpha has received one new application to become a Recognized Delegate:</p>
<p><a href="/u/ultraschuppi">@ultraschuppi</a> has thrown his hat into the ring, and his delegate platform can be found <a href="https://forum.makerdao.com/t/ultraschuppi-delegate-platform/11193?u=mkrorbkr">here <span>1</span></a>.</p>
<p>There will be a <a href="https://forum.makerdao.com/t/meet-your-delegate-5/11238">Meet Your Delegate call <span>1</span></a> with ultraschuppi hosted by <a href="/u/prose11">@prose11</a> on <strong>2021-11-03</strong> at 17:00 UTC if anyone would like to hear from our newest Recognized Delegate.</p>
<p>If anyone else wants to hear more about becoming a Recognized Delegate or has any questions, please reach out to one of the GovAlpha team. We will be happy to help.</p>
<p>To review the Recognized Delegate requirements, please see <a href="https://forum.makerdao.com/t/recognised-delegate-requirements/9421">this forum post</a>.</p>
<p>cc: <a href="/groups/govalpha-core-unit">@GovAlpha-Core-Unit</a> <a href="/groups/gov-comms-core-unit">@gov-comms-core-unit</a> <a href="/groups/recognized-delegates">@Recognized-Delegates</a></p>

Delegate Round-up - October 2021 
  Introduction 
 Welcome to the first edition of The Delegate Round

Delegate Round-up - October 2021

<h1>
<a name="mip79-recognized-delegate-mkr-compensation-1" href="#mip79-recognized-delegate-mkr-compensation-1"></a>MIP79: Recognized Delegate MKR Compensation</h1>
<h2>
<a name="preamble-2" href="#preamble-2"></a>Preamble</h2>
<pre><code><span>MIP#:</span> <span>79</span>
<span>Title:</span> <span>Recognized</span> <span>Delegate</span> <span>MKR</span> <span>Vesting</span>
<span>Author(s):</span> <span>@Patrick_J</span>
<span>Contributors:</span> <span>@psychonaut,</span> <span>@LongForWisdom,</span> <span>@prose11</span>
<span>Tags:</span> <span>delegates,</span> <span>mip-set,</span> <span>delegates-mip-set,</span> <span>process,</span> <span>delegate-compensation</span>
<span>Type:</span> <span>Process</span>
<span>Status:</span> <span>Rejected</span>
<span>Date Proposed:</span> <span>2022-07-29</span>
<span>Date Ratified:</span> <span>N/A</span>
<span>Dependencies:</span> <span>MIP77,</span> <span>MIP78</span>
<span>Replaces:</span> <span>N/A</span>
<span>Forum URL:</span> <span>https://forum.makerdao.com/t/mip79-recognized-delegate-mkr-compensation/16907</span>
<span>Ratification Poll URL:</span> <span>https://vote.makerdao.com/polling/QmUvMPe2</span>
</code></pre>
<h2>
<a name="note-3" href="#note-3"></a>Note</h2>
<p>This MIP is intended to be voted on as a MIP Set along with:</p>
<ul>
<li>
<a href="https://forum.makerdao.com/t/mipxx-delegates-in-the-maker-protocol/16905">MIP77: Delegates in the Maker Protocol</a>.</li>
<li>
<a href="https://forum.makerdao.com/t/mipyy-recognized-delegate-dai-compensation/16906">MIP78: Recognized Delegate DAI Compensation</a>.</li>
</ul>
<h2>
<a name="references-4" href="#references-4"></a>References</h2>
<ul>
<li><a href="https://forum.makerdao.com/t/mipxx-delegates-in-the-maker-protocol/16905">MIP77: MakerDAO Delegates</a></li>
<li><a href="https://forum.makerdao.com/t/mipyy-recognized-delegate-dai-compensation/16906">MIP78: Recognized Delegate DAI Compensation</a></li>
</ul>
<h2>
<a name="sentence-summary-5" href="#sentence-summary-5"></a>Sentence Summary</h2>
<p>MIP79 is a proposal for MKR vesting streams for Recognized Delegates.</p>
<h2>
<a name="paragraph-summary-6" href="#paragraph-summary-6"></a>Paragraph Summary</h2>
<p>MIP79 defines how MKR vesting streams for Recognized Delegates will be calculated and executed.</p>
<h2>
<a name="component-summary-7" href="#component-summary-7"></a>Component Summary</h2>
<p><strong>MIP79c1: Definitions</strong><br />
MIP79c1 defines key terms.</p>
<p><strong>MIP79c2: MKR Vesting Calculation</strong><br />
Defines how MKR Vesting for Recognized Delegates is calculated.</p>
<p><strong>MIP79c3: MKR Distribution Process</strong><br />
Describe how MKR Vesting for Recognized Delegates is handled at the execution level.</p>
<p><strong>MIP79c4: Retrospective MKR Vesting</strong><br />
Describes how MKR will be vested based on retrospective DAI compensation for Recognized Delegates active before this MIP was ratified.</p>
<h2>
<a name="motivation-8" href="#motivation-8"></a>Motivation</h2>
<p>While compensation for Recognized Delegates is primarily in DAI, which is beneficial due to its stability compared to the Dollar, MKR vesting is a valuable tool for allowing Recognized Delegates to establish intertwined incentives with the MKR holders delegating to them. These aligned incentives have not been present for Recognized Delegates; this MIP seeks to change that.</p>
<p>By linking MKR vesting to DAI compensation received by Recognized Delegates (defined in <a href="https://forum.makerdao.com/t/mipyy-recognized-delegate-dai-compensation/16906">MIPyy: Recognized Delegate DAI Compensation</a>) we can indirectly tie the amount of MKR vested to both the amount of MKR received as well as the performance of Recognized Delegates.</p>
<p>By using DssVest to stream MKR over twelve or twenty-four months, we can encourage long-term thinking from Recognized Delegates to maximize the value of the MKR they will receive when the stream completes. In addition, this will align them more fully with the MKR holders delegating to them.</p>
<h2>
<a name="specification-proposal-details-9" href="#specification-proposal-details-9"></a>Specification / Proposal Details</h2>
<h3>
<a name="mip79c1-definitions-10" href="#mip79c1-definitions-10"></a>MIP79c1: Definitions</h3>
<ul>
<li>
<strong>Recognized Delegate:</strong> Any delegate that meets the requirements defined in <a href="https://forum.makerdao.com/t/mipxx-delegates-in-the-maker-protocol/16905#mipxxc2-becoming-a-recognized-delegate-15">MIP77c2</a>.</li>
<li>
<strong>Recognized Delegate DAI Compensation:</strong> DAI compensation paid to Recognized Delegates as defined in <a href="https://forum.makerdao.com/t/mipyy-recognized-delegate-dai-compensation/16906">MIP78: Recognized Delegate DAI Compensation</a>.</li>
</ul>
<h3>
<a name="mip79c2-mkr-vesting-calculation-11" href="#mip79c2-mkr-vesting-calculation-11"></a>MIP79c2: MKR Vesting Calculation</h3>
<p>Once a Recognized Delegate has been active for six months, in effect, six months since they completed the steps to become a Recognized Delegate defined in <a href="https://forum.makerdao.com/t/mipxx-delegates-in-the-maker-protocol/16905#mipxxc2-becoming-a-recognized-delegate-15">MIP77c2</a> and received their first delegated MKR tokens, the Governance Facilitators will calculate the total DAI compensation the Recognized Delegate has received in that time. This value will be divided by the 12-month rolling average price of the MKR token in DAI. This will calculate the amount of MKR vesting to which the Recognized Delegate is entitled.</p>
<p>The Recognized Delegate will then be able to choose whether they want to receive their vesting stream over 12 months or 24 months. If they opt for a 12-month stream, the amount of MKR will be multiplied by 0.75; if they opt for a 24-month stream, it will be multiplied by 1.</p>
<p>This process will repeat every six months that the Recognized Delegate is active. Recognized Delegates are not eligible for MKR Vesting if they step down before they reach six months as a Recognized Delegate. Once a Recognized Delegate has served for six months, they will be entitled to a pro-rata amount of MKR vesting if they step down.</p>
<h4>
<a name="examples-12" href="#examples-12"></a>Examples</h4>
<p>Delegate A has completed six months as a Recognized Delegate. During this time, they received 50,000 DAI compensation for their work. In addition, MKR’s 12-month rolling average price for this period is 1,000 DAI.  Delegate A elects to receive their MKR with a 12-month cliff. Consequently, Delegate A qualifies for 50*0.75 = 37.5 MKR to be streamed to them using DssVest.</p>
<p>After another six months, Delegate A has received an additional 62,500 DAI as compensation, and the MKR token 12-month rolling average price in DAI is now 2,000 DAI. Delegate A opts to receive their MKR with a 24-month cliff. Therefore, delegate A qualifies for  31.25 MKR to be streamed to them using DssVest for this period.</p>
<p>After three months, Delegate A decides they no longer wish to be a Recognized Delegate and follows the process described in <a href="https://forum.makerdao.com/t/mipxx-delegates-in-the-maker-protocol/16905/3#mipxxc7-recognized-delegate-resignation-30">MIP77c7</a>. They will receive MKR streamed to them using DssVest based on the DAI they earned in these three months, with either a 12 or 24-month cliff at their discretion.</p>
<p>Delegate B has completed four months as a Recognized Delegate before stepping down. As they did not complete the minimum six months as a Recognized Delegate, they do not qualify for any vested MKR.</p>
<h3>
<a name="mip79c3-mkr-distribution-process-13" href="#mip79c3-mkr-distribution-process-13"></a>MIP79c3: MKR Distribution Process</h3>
<p>MKR will be distributed to Recognized Delegates using DssVest to an address of their choice. Streams must have a twelve-month or twenty-four-month duration and a cliff date that matches the duration of the stream.</p>
<p>Governance Facilitators will post the amount of MKR to be streamed, stream dates, and cliff dates to the Maker Governance Forum in advance of the relevant Executive Vote.</p>
<p>Recognized Delegates are responsible for confirming the target address for the stream with the Governance Facilitators. If this is not done promptly, the stream will not be included in the next possible Executive Vote but will instead be delayed until it is possible for the Governance Facilitators to include it in a subsequent Executive Vote.</p>
<p>Maker Governance will create the MKR streams through an Executive Vote. MKR vesting stream set-up does not have the same anti-bundling requirements as Recognized Delegate DAI compensation and may go into any Executive Vote. Unlike other MKR vesting streams, Recognized Delegate streams can be bundled with Recognized Delegate DAI payments.</p>
<h3>
<a name="mip79c4-retrospective-mkr-vesting-14" href="#mip79c4-retrospective-mkr-vesting-14"></a>MIP79c4: Retrospective MKR Vesting</h3>
<p>Recognized Delegates that were active before this MIP was ratified will be entitled to receive MKR vesting for the periods they were active and compensated under either MIP61, the Delegate Compensation Trial, or any one-off payments directly related to their role as a Recognized Delegate. This includes Recognized Delegates that have stood down from the role as long as they completed the minimum requirement of six months as a Recognized Delegate.</p>
<p>Retrospective payments will be included in the first calculation of MKR vesting for Recognized Delegates six months after they started their work as Recognized Delegates in the Maker Protocol. Therefore, for Recognized Delegates that have been active for more than six months, their first stream will include the entire period since they started work as a Recognized Delegate.</p>
<p>This will be calculated using the method described in MIP79c2.</p>

Delegate Round-up - October 2021

MIP79: Recognized Delegate MKR Compensation

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