Core Units are the basic workforce divisions that Maker Governance can oversee, manage and prioritize. Each Core Unit has a long-term work area assigned to it that covers a broad set of responsibilities or focus. Core Units can be proposed by anyone; their inclusion in MakerDAO is voted on by Maker Governance.
Each active Core Unit consists of at least three active subproposals (i.e., subproposals that have not been superseded by other subproposals):
- A mandate subproposal (see MIP39) that lays out the objectives and directions that a given Core Unit is responsible for fulfilling.
- A budget subproposal (see MIP40), to request the funding to meet these objectives.
- A Facilitator subproposal (see MIP41) that establishes individuals as official points of contact and parties responsible for the Core Unit fulfilling its mandate.
The concept of Core Unit is defined in a MIP Set called The Core Unit Operating Model, also known as the The Core Unit Framework. This MIP Set comprises MIP38, MIP39, MIP40, and MIP41; jointly, these MIPs define the abstract Core Unit structure.
Core Unit Mandates set the objectives and direction of the work that the Core Unit must strive for.
Mandates aim to be broad, open-ended, and high-level documents that provide space for innovation and flexibility on behalf of the Core Unit Facilitators. They can be regarded as "questions" for Facilitators to "answer" within their Facilitator Commitment proposal.
Mandates from different Core Units can overlap to create redundancy. This helps to parallelize and decentralize work within the DAO.
Budgets are used to fund a core unit in their effort to fulfill their given mandate. A budget is attached to a Core Unit and is meant to be used only for that Core Unit. The Facilitators of each Core Unit administer Core Unit budgets and must ensure that transparency and accountability exist as the budget is spent.
The Budget Framework (MIP40) contains a framework for Maker Governance to manage and evaluate Core Unit's budgets in a transparent and standardized way.
Facilitators have the flexibility to modify their plans away from the initially submitted budget breakdown if they deem it appropriate - though they cannot exceed the total amount budgeted without a further Governance Vote.
Budgets are submitted during a budget submission window, which occur in the March, June, September and November governance cycles.
The components of a Core Unit Budget proposal are:
- Budget Term: Describes the duration of the budget, which can be no longer than 12 months.
- Value: Explains how this budget leads to revenue growth or the potential for improved operational efficiency for MakerDAO.
- Roadmap: Provides a timeline for specific deliverables over the course of the Budget Term.
- Breakdown: Lists expenses by type, discloses full-time equivalent headcount.
- Contingency Planning: Describes how the core unit will cease operations in the event of offboarding.
- Budget Implementation: Defines when and how the Core Unit Facilitators will receive the funds that make up their budget.
A Facilitator is the most trusted actor in the MakerDAO community. They are given a high degree of autonomy and resources with which to achieve their mandated goals.
Additionally, Facilitators of a Core Unit can expedite certain governance processes when the contents of a given proposal can be related to their Mandate. Further, they may be given additional permissions over the Maker Protocol at the discretion of Maker Governance.
The Facilitator Framework (MIP41) provides Governance with a simple way of managing and holding Facilitators accountable through the MIPs process.
The DAO Primitives State (MIP38) allows users to track the currently active Core Units.
The process of proposing a new Core Unit or modifying an existing one is explained in MIP39c2:Adding/Modifying Core Units (Subproposal Process).
The process for removing Core Units is explained in MIP39c3: Removing Core Units (Subproposal Process).
For general information about the Governance Cycle, please refer to MIP51: Monthly Governance Cycle.
- MIP39: Core Unit Framework
- MIP38: DAO Primitives State
- MIP41: Facilitator Framework
- MIP40: Budget Framework
- Official Forum - Core Unit Category
Page last reviewed: 2022-10-12
Next review due: 2023-10-12