 My name is Samuel Raffault. I'm the head of sales of Chain Security. In this is Stadeo, the core unit facilitator of MakerDAO Data Insights. He should find the shorter jump title. So today, I'm going to be talking, we're going to be talking, about statistics on MakerDAO vote delegation. And you might be wondering why me from Chain Security, so not from MakerDAO, why am I talking about this? So Chain Security, we're smart contract auditors and we work with many large DeFi protocols, including MakerDAO, with whom we've had a very close partnership for quite some time. And as head of sales of Chain Security, I've had more and more to deal with DAOs and kind of go through a process that almost looks like an RFP, like a public tender to sell something to a state. And I was kind of wondering, what exactly is the difference when you talk to some people and it seems like a decision is made? And then, oh, yeah, it's the DAO, but sometimes it doesn't feel that different. So I was kind of wondering, OK, how exactly is the community represented in those DAOs? And to look at that, Stadeo helped me a lot, because we looked at vote delegation in Maker. So that was introduced in the summer of 2021. And so what I wanted to do was to look, OK, since it's been introduced, what has changed? What were the effects of voting delegation? So just some data to kind of put things in perspective. Holders of Maker Tokens vote, one Maker Token equals one vote. And there are approximately 1 million Maker Tokens in circulation. And that has been the same in 2021 and 2022. So the whole period studied, let's say it's approximately 1 million Maker in circulation. All right, so you can vote as a Maker Token holder. But the problem is that voting takes time and money. Hence, the introduction of delegation, basically allowing Maker Token holders to entrust someone, a third party, with their voting power. So meaning it's kind of like a politician in the end, you know, that you trust with your vote, you vote for them, and then they can take decisions for you. And they're going to be involved in this process, you know, of reading on the potential decisions, the potential changes that are going to be implemented. One thing that is kind of interesting is that as opposed to a politician where you have a fixed term four years or whatever, here you can undeligate at any point. So if at some point, so you as a delegator, you delegate your tokens, but you can undeligate at any point. So basically firing them, you know, if you want. And so there are two types of delegates. You have the shadow delegates, so it's permissionless. As if I was saying, all right, Tadeo, I know you know everything about Maker. I trust you to take decisions for me. And it's kind of just peer to peer between him and me. But there are also recognized delegates, which are monitored by the governance core units. And there we can see some information about them. And so this is an example of the two biggest delegates in Maker.DOW. So here you can see, you know, how much they participate in votes, how much they communicate on the forums. You can see how much, you know, how many tokens are delegated to them and so on. So there is kind of this transparency and this oversight from an authority that is the governance core unit. Okay, so now that we know what it is, let's look at, you know, kind of how it's impacted the community and the governance. Here we can see, so this is from a beginning of the month. We can see that there were 115 delegates and among these, 23 are recognized delegates. And what's very interesting I find is that almost 15% of all Maker tokens are delegated. So we can see that, you know, it has really had traction. It's not something that is just a small and on the side. But now it's interesting, in these 15%, what does it look like? You know, who delegates to who? And this is something that we can see thanks to the amazing work of the data core unit. So here you can see on the left, this is the largest delegator. And you can see on the right who he delegated to. Why do I say he? Because probably it's ruined the founder, right? And you can see here really who he delegated to. And what's very interesting is that he delegated to people that he knows and publicly supports, but he also delegated to people that he publicly disagrees with. He also delegated to university clubs, you know, blockchain university clubs. And so that's kind of one of the big points that I wanna make in this presentation. Sometimes we think that the idea of delegation is that small token holders can kind of get together and become more powerful and so on. But actually one thing that we see most is that it's the opposite. It's huge, you know, it's whales who decentralize a bit of their power. And so we can see these are also like the other five. These are also kind of big token holders. It's like Andreessen Horowitz and other kind of whales. And then we have not even 8K, not even 8,000 maker tokens delegated from all the rest. So you can see that, you know, this is a much smaller amount. And so all the rest delegates to all these delegates. So now that we know kind of the structure of delegation, we can look at Q2 2021, so which is the quarter right before delegation was introduced in the summer. So like in July, August, 2021, it was introduced. And then we compare it here with Q2 2022, so one year later. And what is really interesting to me is that you have, in terms of the median poll participation, in terms of the number of maker tokens, you can see that there's an increase of 540%. So what does that mean? There are way more maker tokens which are put on average in every vote. So that means it is way harder to commit a governance attack, you know, so if you want to, I don't know, do something kind of shady with the protocol to borrow tokens and kind of have this voting power to do something nefarious, well it's much more difficult when there are 92,000 maker tokens than when there are 14 in a vote. So that's kind of the very interesting takeaway there. So takeaways, whales delegate their MKR as a way to decentralize themselves. And we see, again, like I said before, a very significant increase in the number of maker tokens that are used in votes. And so now some questions that, you know, I don't have time because it's a very short presentation. You know, I think it's interesting to think about, okay, what is the optimal level of oversight on these delegates? So the core unit that takes care of governance, how much should they monitor them and kind of have this relationship? Also, looking at the compensation of delegates, it's kind of interesting. If you have 10,000 maker delegated to you, so that's approximately, you know, almost $9 million, you have a yearly salary of $120,000 US dollars approximately. So that's a salary that you can live on. And so that's a cap. So is this an appropriate compensation? This is also, I think, a very interesting question. Another thing, so now we incentivize delegates, right? But should we maybe incentivize voters? Should we incentivize delegators? Maybe this would make sense. There is also something that we've seen, is that some whales delegate to themselves. And it's kind of funny to think, you know, that you're gonna get paid to delegate to yourself. But as we discussed, it's also some work that you do, even if it's for yourself. If you publish on the forum, if you do all this research, maybe this is also something that you should be compensated for, even if it's your own tokens. And finally, talking about whales decentralizing themselves, should we maybe lock those tokens in a delegation contract for a longer period of time so that you cannot say, oh, I'm decentralizing myself, but the second you do not exactly what I want you to do, I take my tokens back. So maybe it could be interesting to create this type of options. So I just wanna say a quick thanks to those who helped me. I focused here on Maker, but I also wanna say thanks to the compound team, to the pull-together team and to Reverie for helping me prepare this presentation. And of course, to Tadeo who helped me and provided all the data. Thank you. Sorry, you said there was 24 official delegates and 92 unofficial delegates or something like that. How do the 92 become an official delegate? I guess that's the 120K compensation, right? So in terms of the onboarding to become a recognized delegate, right now we're trying to keep it as easy as possible and this is great work from Goal Fund, the governance teams. It's, yeah, you have to have a call, you have to present a platform, present yourself, and basically you have a public image. Again, it can be an anonymous person, that's totally okay on our side, but you basically need to have an open dialogue with the community. Something that was shown in one of the first screenshots coming from our voting portal. There, we actually, the Compositions is managed by the performance. The performance is basically, is the delegate voting on all the polls and all the executives and are they giving a reasoning for those votes?