MIP 29: Adjustment of Builder SubDAO Mandate

Author	Cam Soulsby, James Simpson, 0xloth, mZeroNine
Discussions-To	https://forum.mstable.org/t/mip-29-adjustment-of-builder-subdao-mandate/982
Status	Implemented
Created	2023-01-31

Simple Summary

It is proposed that the mStable project and its Builder subDAO refocus its mandate to find a clear direction forward for the DAO. This comes after suggestions given by core contributors, community and Meta Governors.

Abstract

Several mStable community members, stakeholders and core contributors have voiced concerns that the mStable project is facing major structural challenges, stemming from the MTA token price and an unsustainable burn rate. From these concerns, the options of a shutdown and acquisition have been proposed.

Conversely, several mStable community members, stakeholders and core contributors have written comments in this recent RFC differing potential future paths for mStable.

It is proposed that a four-week period is opened at resolution of this MIP in which:

Those who wish to reform and bring mStable forward can create and publish a formal proposal outlining their plan;
The Builder subDAO shifts its focus to facilitating merger or acquisition talks as well as assessing the requirements to shutdown the project.

The purpose of this four week period would be to have all proposals (continuation, acquisition, shutdown) published for consideration and voting in a follow-up MIP.

Motivation

Several mStable contributors, community members and stakeholders have agreed that the project is facing major structural challenges, which can be summarised as:

the project will find it very difficult raise with the current token given its value;
the protocol isn’t earning enough from its products to self-sustain;
the DAO’s runway is continuing to decrease each month and will be depleted at current burn within 12 or so months.

From these concerns, the options of a shutdown and of an acquisition were proposed.

Conversely, several mStable community members, stakeholders and core contributors have written comments in this recent RFC outlying differing potential future paths for mStable, such as continuing with a slim team made up of existing core contributors, hiring a new, smaller team, or reforming the project’s product line.

In light of these various opinions, it is proposed that MTA voters allows a period of four weeks to get more clarity and certainty on each of these paths.

Again, those who want to reform and bring mStable forward would be invited to create and publish a formal proposal about how this would be done.

In the meantime, the Builder subDAO is proposing to shift its focus on:

Facilitating merger or acquisition talks
Work with other parties to discuss potential strategies to allow the project to continue
Assist with governance proposals
Assess requirements to shutdown

The primary purpose of this vote is for MTA governors to decide if it is worth allowing a period of time for proposals to be presented which could allow the acquisition or continuation of the mStableDAO, as well as to understand what a shutdown would look like. Additionally, this vote will guide the current Builder subDAO and Ecosystem subDAO in how resources should be allocated immediately following its resolution.

Specification

Voting options:

Shift Builder subDAO focus, for a limited period of seven weeks starting upon resolution of the proposal - The mandate would be: search for acquisition options from other DeFi projects as well as assessing requirements to shutdown. During the first four weeks, any proposal can be made by any party which would allow the mStableDAO to continue to operate in some way. After the initial four week period has elapsed, a new MIP would be created so that governors can vote on all available options.
Pursue a shutdown as soon as possible - The mandate would be: create a proposal that outlines a plan to shutdown the mStable DAO and its product/protocol as soon as practicable. There would be no attempt at seeking acquisition or fielding proposals to continue the project.
Reject this MIP

Notes about option 1

If a project or entity is interested in acquiring mStable, they must submit a proposal to do so within this four week period. If there are no submissions within this timeframe, the DAO will assume there are no interested parties.
If there is somebody or a group of people who would like to propose a way to continue mStable, they must submit a proposal to do so within this four week period. If there are no submissions within this timeframe, the DAO will assume there is not a path to continue building mStable.
At the end of this four week period, all submissions for acquisitions and continuing mStable will be put together in a vote, along with a choice to fully shutdown the project. Each choice will have an accompanying specification, including the estimated costs associated with a shutdown option. There will also be options to abstain from voting or to reject all options.
If there are no submissions for acquisitions or continuing mStable within this period, a shutdown will be proposed. The specification for this shutdown will have been written during the four week period to give the mStable community time to consider it and provide feedback.

Builder subDAO Funding

If first voting option is passed, the Builder subDAO proposes to carry out its new mandate using the currently approved funding until a clear path forward is established.
If the second voting option is passed, the Builder subDAO proposes to use currently approved funding for a short period until a new shutdown funding budget is presented as part the full shutdown proposal.

For the first voting option, it is proposed to set prerequisites in order to avoid any malicious governance behavior during this period:

Proposers of a reform or acquisition strategy will need to lead the governance process around this proposal and takes ownership of its execution. This is done to avoid trolling or suggestions without any follow-up skin in the game.
The Builder subDAO will update the mStable community via forum after two weeks on an update on current acquisition progress. It is expected a formal proposal be made in the following, final 2 weeks, by any party interested in acquiring mStable.
It is strongly suggested interested parties (to continue mStable or to acquire it) indicate interest in submission as soon as possible to allow for feedback.

In order to facilitate the next steps for Governance, the following clauses are also proposed to be added to the vote to ease complexity and ensure integrity of previously agreed-upon processes:

All regular governance processes be halted that coincide and would disrupt this process of a higher priority - In detail, this means that new signer elections & upcoming monthly Governance Calls onwards will be halted until the resolution and carrying out of both MIP 29 and MIP 30 have concluded. This will ensure the integrity of the multisig is retained and the remaining runway and priorities maximized towards resolving this challenge.

MIP 29: Adjustment of Builder SubDAO Mandate Source