This is a proposal to change the denomination of the YFI token. The redenomination will involve a proportional increase of allocated YFI tokens by a factor of 1000.
If accepted, the proposal would have the following effects:
- 1 YFI token would become 1000.
- The total number of YFI tokens would correspondingly increase from 30,000 to 30,000,000.
- Balances would also increase 1000x.
- The distribution of YFI would not change, nor would the emission schedule. Current holders of YFI tokens would own the same percentage of the total supply as they did prior to the redenomination.
The main benefit of this change is that it reduces the need to use decimals when transacting. High nominal token prices add unnecessary mental load. At the current price of ~$3000 USD/token, this is an issue already, but it is one that would only get worse if the market cap of YFI were to get bigger.
The change would also make the token price more mainstream. Most people are used to transacting in the tens and hundreds. Making this change will help ensure that demand for YFI is not unduly affected by an unusually high nominal token price.
- Denominate YFI: 1 YFI will be 1000
- Keep current denomination
I agree…having a smaller token value number helps psychologically.
As long as there are no fall out effects from this (thinking perhaps LP pools?) then I’d be for it.
yes it needs to be thought through carefully…no need to rush. But im for the general idea.
I agree we need this. It will give exposure to a lot of people and grow the community.
this is a great start. I think re-denominating the price to $0.01 would be even better. 300,000 YFI for each 1 YFI.
it is hard to re-dominate tokens once projects grow, because it imposes costs on ecosystem people, so better to do 1 big redomination at the beginning, and make that the last re-denomination we ever need to do.
Yes please. I’ve suggested this in the YFI inflation thread. It’s a good idea
I would fully support this proposal. My question is if emission model discussion needs to be settled first?
Love the concept.
I think it would be the final thing to pass once the whole house is in order.
Governance, emission model, security budget etc
Then the project feels unstopppppable.
On second thoughts…we dont want to cause ripple effects amongst the existing pools…its a ‘nice to have’ if its easy enough to do…but not worth it if its going to add lots of disruption/confusion…imho
Since it’s mostly a matter of preferences I admit that I like my YFI heavy and expensive.
The main benefit of this change is that it reduces the need to use decimals when transacting.
It also removes the uniqueness of YFI among all other coins.
Edit: Do we have any notable examples of other projects doing anything similar?
I think 30 million supply is fair. Puts us a bit higher than BTC’s supply but still more scarce than many other tokens out there. So the scarcity factor extends to an extent.
So by @Substreight 50k model, this will put total supply to 50 mil after 10 years. Also cool.
but you also need more people to buy.
many like buying full tokens rather than decimals.
Polkadot is in the middle of a redenomination.
Opposed. YFI is a governance token and I think it’s good it feels heavy and significant. Similar price level doesn’t seem to be a problem for bitcoin.
If you really want to transact in hundreds, you can just invent a name for smaller denomination:
1 YFI = 1000 andre.
I have been buying fraction of BTC for years. Maybe we should introduce another unit. 1 YFI = 100,000,000 AND
I appreciate the sentiment, but I’m not sure this is aligned with the founding ethos of YFI:
And just because we feel we didn’t stress it enough, 0 value. Don’t buy it. Earn it.
I don’t like it.
People are using smart words to justify, but the basic premise is 1YFI price too high, normies won’t buy.
Kinda feel the opposite is true. Splitting the supply kills a lot of fun memes/targets (1YFI:1BTC).
Yeah but BTC doesn’t have a market cap of ~$90 million. This issue is only going to get much worse.