Based on the income statement recently posted between Aug-Oct 2020 the net income was equal to almost 3.8mln USD, however the amount paid to governance stakers was only 2.5mln USD.
Why does the net income was not fully distributed to the YFI holders?
How does the income distribution to the YFI holders looks in practice? Is it a weekly/monthly payment or it happens when a user of the vault gets out and at that moment the fees/rewards are being distributed to the holders?
Reason is because some profits received from the strategies were not converted into ycrv so they can run through governance contracts to stakers. That was not intentional just something that didn’t get done since focus was on building v2. It’s basically sitting in this wallet 0x93a62da5a14c80f265dabc077fcee437b1a0efde . If you’d like to work on this as a project you are more than welcome to do so. I think v2 will have this issue corrected.
There is first a $500k buffer to fund Treasury before stakers are paid, this is used to cover operational expenses (salaries, grants, audits, security costs).
After Treasury is funded, on a periodic basis, funds are sent to stakers in governance, which is why not all earnings are sent to stakers. A portion is used for overhead.
Additionally, as @YFI-Cent has mentioned there are several assets currently in the Treasury Vault that have not been converted to yCRV yet. The staking contract only accepts yCRV. I believe on the launch of v2 these will be converted.