# Proposal 1: YFI Fee Collection **URL:** \ **Category:** YIPs\ **Tags:** no-quorum\ **Created:** [19 July 2020 20:55 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25 "2020-07-19T20:55:50Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Coopahtroopa](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/coopahtroopa/32/8_2.png) [@Coopahtroopa](https://gov.yearn.fi/u/Coopahtroopa)\ **Post date:** [19 July 2020 20:55 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/1 "2020-07-19T20:55:50Z")
**Vote live on [https://ygov.finance/vote](https://ygov.finance/vote) under “1”** **Context:** All yEarn fees (currently $60/wk) are routed to this Vault and normalized to aDAI. YFI represents a claim on those fees. To claim fees, **YFI must be burned.** This proposal is to decide whether or not **keep this mechanism** the same or **change it to a stake based system** where those who stake YFI are entitled to a pro-rata claim on the reward pool (without having to burn YFI). **Voting Signal:** For: Continue burning YFI to claim trading fees. Against: Stake YFI to collect trading fees staking, instead of burning. **Original Tweet:** > ---
**Author:** ![Coopahtroopa](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/coopahtroopa/32/8_2.png) [@Coopahtroopa](https://gov.yearn.fi/u/Coopahtroopa)\ **Post date:** [20 July 2020 05:42 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/2 "2020-07-20T05:42:22Z")
I’m leaning towards Against and shifting to a staking model as it feels more intuitive with other existing ecosystems. What would the benefit of keeping burning be outside of scarcity to drive token price be? ---
**Author:** ![andre.cronje](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/andre.cronje/32/2283_2.png) [@andre.cronje](https://gov.yearn.fi/u/andre.cronje)\ **Post date:** [20 July 2020 05:51 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/3 "2020-07-20T05:51:07Z")
I agree with Against as well. It was a dumb idea, I should never have thought of it. ---
**Author:** ![Mr\_Sadim](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/mr_sadim/32/111_2.png) [@Mr\_Sadim](https://gov.yearn.fi/u/Mr_Sadim)\ **Post date:** [20 July 2020 06:09 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/4 "2020-07-20T06:09:31Z")
I actually think this was a really interesting idea, specially if we have the continuous issuance model. Then we would have a similar effect to EIP1559 on yearn. Some people would want to burn their yfi to get their rewards, while others just stake to get more yfi. ---
**Author:** ![Coopahtroopa](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/coopahtroopa/32/8_2.png) [@Coopahtroopa](https://gov.yearn.fi/u/Coopahtroopa)\ **Post date:** [20 July 2020 06:10 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/5 "2020-07-20T06:10:36Z")
That’s super interesting framing. If continuous issuance - burning makes more sense. if fixed supply - staking makes more sense. ---
**Author:** ![bharat2288](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/bharat2288/32/19_2.png) [@bharat2288](https://gov.yearn.fi/u/bharat2288)\ **Post date:** [20 July 2020 06:12 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/6 "2020-07-20T06:12:22Z")
If Proposal #0 passes, i.e. YFI continues to minted (let’s say at a lower rate)–which looks unlikely, seeing as the vote is 3:1 against as of now–the YFI burn is a good mechanism to maintain the perception that inflation is in check (even if in actuality inflation outpaces the burn, which is going to be the case initially, I suspect). Technically though, locking achieves the same effect–reduces circulating supply. ---
**Author:** ![Mr\_Sadim](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/mr_sadim/32/111_2.png) [@Mr\_Sadim](https://gov.yearn.fi/u/Mr_Sadim)\ **Post date:** [20 July 2020 06:12 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/7 "2020-07-20T06:12:44Z")
Sometime you just want to experiment with new tokenomics design for the sake of it, for experimenting and learning how the market reacts. We all would not be here if it wasn’t for people experimenting with new things. I also think that having scarcity is a great benefit for a token in order for it to capture value. ---
**Author:** ![Mr\_Sadim](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/mr_sadim/32/111_2.png) [@Mr\_Sadim](https://gov.yearn.fi/u/Mr_Sadim)\ **Post date:** [20 July 2020 06:14 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/8 "2020-07-20T06:14:20Z")
That all being said. I wished we could have more discussions about the possible proposals than to rush them in like we’ve been having. ---
**Author:** ![OperationDeFi](https://avatars.discourse-cdn.com/v4/letter/o/d2c977/32.png) [@OperationDeFi](https://gov.yearn.fi/u/OperationDeFi)\ **Post date:** [20 July 2020 06:45 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/9 "2020-07-20T06:45:45Z")
Agreed. These two proposals are intimately connected. Burning does not make sense with a non-inflationary supply. ---
**Author:** ![Coopahtroopa](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/coopahtroopa/32/8_2.png) [@Coopahtroopa](https://gov.yearn.fi/u/Coopahtroopa)\ **Post date:** [20 July 2020 06:56 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/10 "2020-07-20T06:56:24Z")
Agreed that in the future we should look to ensure all proposals have significant discussion on the forum prior to being pushed onchain. The more consensus which can be reached offchain, the better (and smoother) onchain voting will go IMO ---
**Author:** ![michaeljohn](https://avatars.discourse-cdn.com/v4/letter/m/4da419/32.png) [@michaeljohn](https://gov.yearn.fi/u/michaeljohn)\ **Post date:** [20 July 2020 08:12 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/11 "2020-07-20T08:12:05Z")
Can someone clarify if future protocol fees will be distributed direct to YFI holders, without needing to hold BPT or yCRV on Balancer? Seems like this adds more barriers, I only want to hold YFI and don’t want exposure to the other assets, especially not in a 98% / 2% ratio. ---
**Author:** ![jiecut](https://avatars.discourse-cdn.com/v4/letter/j/db5fbb/32.png) [@jiecut](https://gov.yearn.fi/u/jiecut)\ **Post date:** [20 July 2020 09:02 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/12 "2020-07-20T09:02:46Z")
So one thing with the original burn model, nothing gets burnt until there’s more rewards than the marketcap of the $YFI. Staking model looks cool. Could be interesting to stake using a BPT that’s 80% YFI instead of 100% YFI. ---
**Author:** ![jiecut](https://avatars.discourse-cdn.com/v4/letter/j/db5fbb/32.png) [@jiecut](https://gov.yearn.fi/u/jiecut)\ **Post date:** [20 July 2020 10:34 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/13 "2020-07-20T10:34:58Z")
Also very interested in the breakdown of protocol fees. ---
**Author:** ![ethv](https://avatars.discourse-cdn.com/v4/letter/e/e47c2d/32.png) [@ethv](https://gov.yearn.fi/u/ethv)\ **Post date:** [20 July 2020 16:03 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/14 "2020-07-20T16:03:14Z")
how can we verify the $52k in weekly rewards? what is the breakdown? where is the majority coming from out of this list? - yearn.finance interest - COMP from compound - CRV from [curve.fi](http://curve.fi) - [curve.fi/y](http://curve.fi/y) trading fees - ytrade.finance leverage fees and liquidation bonuses - yswap.exchange underlying system fees - iliquidate.finance liquidation bonuses - system dust (unassigned interest or fees) ---
**Author:** ![banteg](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/banteg/32/3608_2.png) [@banteg](https://gov.yearn.fi/u/banteg)\ **Post date:** [22 July 2020 05:55 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/15 "2020-07-22T05:55:04Z")
The onchain voting ends in 3.5 hours and the quorum on this proposal hasn’t been reached yet (23% out of the required minimum of 33%). Please cast your vote now. ---
**Author:** ![banteg](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/banteg/32/3608_2.png) [@banteg](https://gov.yearn.fi/u/banteg)\ **Post date:** [22 July 2020 05:55 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/16 "2020-07-22T05:55:56Z")
---
**Author:** ![levyashin](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/levyashin/32/117_2.png) [@levyashin](https://gov.yearn.fi/u/levyashin)\ **Post date:** [22 July 2020 10:02 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/17 "2020-07-22T10:02:42Z")
What is the current burn model. How much yfi gets burn when i claim fees? We need some guides. ---
**Author:** ![banteg](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/banteg/32/3608_2.png) [@banteg](https://gov.yearn.fi/u/banteg)\ **Post date:** [22 July 2020 10:13 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/18 "2020-07-22T10:13:58Z")
Proposal **did not pass minimum quorum** (22% out of 33% minimum). It had 502,445 votes for and 3,953,417 votes against. ---
**Author:** ![zirs3d](https://avatars.discourse-cdn.com/v4/letter/z/c5a1d2/32.png) [@zirs3d](https://gov.yearn.fi/u/zirs3d)\ **Post date:** [22 July 2020 10:42 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/19 "2020-07-22T10:42:50Z")
Are there further strategies to improve voters turnout? This might be a suggestion: By extending the voting timelock (voteLock) duration; no change to votes counting mechanism is necessary, also drafted a proposal for discussion > A longer voting time lock can be beneficial, as voters won’t unstake wilfully between proposals > [Proposal: Extending time lock duration on yGov pools (voteLock) - #4 by zirs3d](http://gov.yearn.fi/t/proposal-extending-time-lock-duration-on-ygov-pools-votelock/191/4) ---
**Author:** ![zirs3d](https://avatars.discourse-cdn.com/v4/letter/z/c5a1d2/32.png) [@zirs3d](https://gov.yearn.fi/u/zirs3d)\ **Post date:** [22 July 2020 10:57 UTC](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25/20 "2020-07-22T10:57:33Z")
> [@Coopahtroopa](#): > > That’s super interesting framing. > > If continuous issuance - burning makes more sense. > if fixed supply - staking makes more sense. Quorum not met, possibly due to the contentious Proposal 0 in parallel with the Proposal 1 Since **Prop 0: For vote has passed** , in all clear conscience calling for a vote on the method of YFI Fee collection right now; whether to model fee collection on burning or to use staking would result in a clear winner emerging. Update: there are other proposals live on-chain concurrently According to this document, Prop #5 assesed as invalid and ignored > [http://gov.yearn.fi/t/summary-of-ongoing-proposals-live-post/132](http://gov.yearn.fi/t/summary-of-ongoing-proposals-live-post/132) Proposal 5: Reducing YFI weekly supply (NOT Valid) [Proposal 8: Halving YFI weekly supply the same as bitcoin](http://gov.yearn.fi/t/proposal-8-halving-yfi-weekly-supply-the-same-as-bitcoin/263) [Next page](https://gov.yearn.fi/t/proposal-1-yfi-fee-collection/25.md?page=2)