This is not necessarily at odds with the proposal. Using the current YFI market cap of ~$1B a 3.3% dilution would be ~$33M that goes to the dev fund. It’s important to note that while it sits in a multisig it’s effectively non-dilutive.
I don’t see an estimate here for what the estimated dev fund spend would be but I think 20% per year is reasonable estimate or $6.6M, that is the effective annual dilution then.
I would say the hurdle rate for that capital is 30%, so for every $1 spent, at least $1.30 is created in value or for the $6.6M spent ~$8.5M in value should be created.
Given the nearly $1B in value created in less than a year I think this is a hurdle the team can hit.
Given the weekly fees, it should also be possible to partition off a part of it to meet that dev fund requirement as an alternative to dilution.
When there is lots of opportunity that capital should not be returned to holders as it would be better invested in the project itself where it can earn a much higher ROI.
Capital allocators that demand constant return of capital when there is potential are net destroyers of capital.
Imagine if Amazon decided to return it’s profits to shareholders instead of creating AWS or Apple did the same instead of launching the iPhone. On the flipside G.E. returned much more capital to investors over the past 20 years than Amazon and they not only did worst than them, they underperformed just holding cash with double digit negative returns.