Here’s a few thoughts:
Part 1.
Having agreed issuance (3-10k), is it not in our ability to hard code a diminishing rate of inflation from 1% trailing to zero over a 3-5 year period which totals the remaining 2k. (Max total to reach 42k) Capturing benefits of a long trailing incentive.With price advances this should remain enough of an incentive imo.
Part 2.
We hard code in a buyback program, a kitty, where a % of protocol generated cash flow is used to automatically purchase YFI on the open market. This can be done at specific periods OR when price returns to a trailing average. Say if price drops to the 20 dma, all capital raised in the kitty is used to purchase YFI on the open market. This YFI (and/or the kitty) would be accessible to the community for future expansion/developments.
This way, we burn the keys, having built in a means to replenish a supply of capital for future growth.
Edit.
I would amend the above to say, the kitty would only buy YFI if price falls below the 20 dma. It would continue purchase YFI at or below the 20 dma until the kitty has depleted. If capital entered the kitty and price was still below the 20 dma, purchases would resume.
I’m certain this could be built in as a new smart contract, leaving us free to burn keys that mint YFI tokens.