Summary
What’s better than Buyback and Build? Build now and buyback later.
What’s better than mint? Net zero inflation mint credit we can share with yecosystem
- Mint 3000 YFI warchest now (2000 for immediate Dev equity, Op expenses, and Yearn warchest, 1000 reserved for launch incentives of future yproducts). Burn mint keys.
- Store 3000 YFI in Iron Bank (extending credit to yecosystem) until it is spent (large portions can be spent immediately for dev equity and expenses)
- Set one of the goals of “BABY” to buyback up to the 3000 YFI credit line
Background
- Comprehensive summary of various proposals to align dev incentives, enact buybacks and build operational funding: Keeping Yearn Great - Funds, Incentives & Rewards
- Iron Bank: Introducing The Iron Bank. Part II: The Road to Cream v2 | by C.R.E.A.M. | Jan, 2021 | Medium
Motivation
#1 motivation is how can we benefit ALL stakeholders: Devs, Gov, yecosystem and create a long-term multi-decade credit framework to support long-term development. Problem with current proposals is they favor one stakeholder viewpoint over another and do not create levers for long-term economic policy.
- Buyback and Build is great, but takes time and does not give immediate dev incentive (equity) for v2 and other near term launches
- Minting is contentious (prior snapshot vote to burn keys); net zero minting would create a 3000YFI operational credit line instead and burn keys to respect the spirit of non-inflation previously voted on. Dev equity should probably have some sort of vesting and probably determined by multisig.
- Sharing credit line in Iron Bank to yecosystem partners helps build the ecosystem. And reserving 1000YFI (or 1/3 credit) for future launch incentives will help fund future yproducts or yecosystem and improve fair launch distribution. Such incentives could be voted on by Gov and is a common voting topic for other communities, giving Gov a more concrete way to be involved meaningfully.
- Per the “Buyback and Make” Placeholder VC essay, companies who buyback only tend to have low growth. The ability to buyback when needed OR inflate/offer incentives when needed are essential to any sound monetary policy. During certain times, we can accumulate the warchest and during others, we can deploy it as launch incentives for new projects. Meanwhile, the yecosystem can lean on our credit line too.
- This creates long-term levers for our economic policy and is innovative/unique among other projects. Yearn pioneered a new form of fair launch and now let’s pioneer a new form of long-term levers for economic policy that benefit Devs, Gov and yecosystem partners, and support future decades of project launches and development.
Specification
To be developed by bigger brains. Amounts can be adjusted/debated. This proposal is to guage general concept interest.
Also I have very little understanding of Iron Bank particulars. A similar strategy can hold the warchest with stable credit or other initiatives. The most important concepts though are 1) the establishment of corporate credit which can be used as banking backstop shared with yecosystem and 2) a buyback policy that offsets the mint to net zero inflation.
For: Yes, net zero inflation mint a credit line is an interesting idea and we should debate the particulars and make a more detailed specification/proposal
Against: This is worse than other proposals and not worth exploring further
Poll:
-
- Yes, net zero mint a credit line is an interesting idea and we should explore further
-
- No, this is not worth discussion
0 voters
: