The Governance Facilitator(s) and the Protocol Engineering Core Unit have placed an executive proposal into the voting system. MKR Holders should vote for this proposal if they support the following alterations to the Maker Protocol.

If you are new to voting in the Maker Protocol, please see the voting guide to learn how voting works.

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Executive Summary

If this executive proposal passes, the following changes will occur within the Maker Protocol:

• A total of 3,307 DAI will be transferred to two Recognized Delegates, as detailed below.
• A total of 307.12 MKR will be transferred to the Collateral Engineering Services Core Unit (CES-001) and the Sustainable Ecosystem Scaling Core Unit (SES-001), as detailed below.
• A total of 50,000 DAI will be transferred to a designated address for the initial funding of Phoenix Labs, as detailed below.
• The RETH-A Debt Floor (dust) will be decreased, as detailed below.
• Monetalis updates:
  • Return excess MIP65 funds to the Surplus Buffer, as detailed below.
  • Removal of DC-IAM from RWA-007, as detailed below.
  • Increase of the MIP65 Debt Ceiling (line), as detailed below.
• PSM Parameter Normalization, as detailed below.

Voting for this executive proposal will place your MKR in support of the changes and additions outlined above.

Unless otherwise noted, the changes and additions listed above are subject to the GSM Pause Delay. This means that if this executive proposal passes, the changes and additions listed above will only become active in the Maker Protocol after the GSM Pause Delay has expired. The GSM Pause Delay is currently set to 16 hours.

This executive proposal includes an office-hours modifier that means that it can only be executed between 14:00 and 21:00 UTC, Monday - Friday. This is to ensure that at least some auction keepers are available to react to unforeseen issues with their bots in the event of early liquidations on new collateral types.

If this executive proposal does not pass within 30 days, then it will expire and can no longer have any effect on the Maker Protocol.

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Proposal Details

Recognized Delegate Compensation

As per MIP61: Recognized Delegate Compensation, a total of 3,307 DAI will be distributed to two Recognized Delegates as detailed below, if this executive proposal passes:

• 3,126 DAI will be transfered to London Business School Blockchain at 0xB83b3e9C8E3393889Afb272D354A7a3Bd1Fbcf5C.
• 181 DAI will be transfered to ConsenSys at 0xE78658A8acfE982Fde841abb008e57e6545e38b3.

Note that the compensation for these two Recognized Delegates for February was left uncleared as they failed to confirm their addresses. They have now been confirmed.

MKR Transfers

As per the ratified MIP40c3-SP17: Sustainable Ecosystem Scaling Core Unit MKR Budget, 229.78 MKR will be transferred to the Sustainable Ecosystem Scaling Core Unit (SES-001) at 0x87AcDD9208f73bFc9207e1f6F0fDE906bcA95cc6, if this executive proposal passes.

Additionally, as per this successful governance poll, 77.34 MKR will be transferred to the Collateral Engineering Services Core Unit (CES-001) at 0x25307aB59Cd5d8b4E2C01218262Ddf6a89Ff86da to correct a shortfall (explained in this thread), if this executive proposal passes.

SPF Dai Transfer

As per the ratified MIP55c3-SP15: Phoenix Labs Initial Funding (SPF), 50,000 DAI will be transferred to designated address 0xD9847E6b1314f0327F320E43B51ca0AaAD6FF509, if this executive proposal passes.

RETH-A Dust Decrease

As per this successful governance poll, the RETH-A Debt Floor (dust) will be decreased as detailed below, if this executive proposal passes:

• Decrease the RETH-A Debt Floor (dust) Parameter by 7,500 DAI from 15,000 DAI to 7,500 DAI.

Monetalis Updates

1. As per this successful governance poll, the MIP65 trustee will be instructed to sell shares and return the proceeds to the Surplus Buffer, if this executive proposal passes.

If this proposal is passed by MKR holders, MakerDAO instructs the Trustee James Asset (PTC) Limited on behalf of James Asset Trust to sell 8,540 shares of IE00BGSF1X88 iShares $ Treasury 0-1 yr UCITS ETF and 73,486 shares of IE00BYXPSP02 iShares $ Treasury Bond 1-3 yr UCITS ETF, as detailed here.

2. As per this successful governance poll, the Debt Ceiling Instant Access Module (DC-IAM) will be removed from MIP65 (RWA007-A), if this executive proposal passes.

3. As per this successful governance poll, the MIP65 (RWA007-A) Debt Ceiling (line) will be increased by 750 million DAI from 500 million DAI to 1.25 billion DAI, if this executive proposal passes.

For more information on these changes, please review Clydesdale (MIP65) Liquidation & DC Increase Execution Documentation and The DC Increase (MIP65) - Legal Assessment.

PSM Parameter Normalization

As per this post from the Risk Core Unit (RISK-001), the following parameter changes will be made, if this executive proposal passes:

Maximum Debt Ceiling (line) Change

• Reduce the PSM-USDP-A line by 500 million DAI from 1 billion DAI to 500 million DAI.

Fee In (tin) Changes

• Reduce the PSM-USDC-A tin by 1% from 1% to 0%.
• Reduce the PSM-GUSD-A tin by 0.1% from 0.1% to 0%.

Fee Out (tout) Changes

• Increase the PSM-GUSD-A tout by 0.01% from 0% to 0.01%.
• Reduce the PSM-USDP-A tout by 1% from 1% to 0%.

Target Available Debt (gap) Changes

• Increase the PSM-USDC-A gap by 150 million DAI from 250 million DAI to 400 million DAI.
• Increase the PSM-GUSD-A gap by 40 million DAI from 10 million DAI to 50 million DAI.
• Reduce the PSM-USDP-A gap by 200 million DAI from 250 million DAI to 50 million DAI.

Review

Community debate on these topics can be found on the MakerDAO Governance forum. Please review any linked threads to inform your position before voting.

Additionally, these changes may have been discussed further in recent Governance calls. Video for these calls is available to review.

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Resources

Additional information about the Governance process can be found in the Maker Operational Manual.

To participate in future Governance calls, please join us every Thursday at 17:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Governance Calendar.