Yearn Vaults collect Governance tokens like UNI, CRV, SWRV, METRIC and others likely yet to come such as DYDX, 1INCH, METAMASK, etc. instead of dumping them. Stay with me here…
Imagine the collective Voice in Ethereum ecosystem Governance that the Yearn Community could yield as more and more capital is aggregated.
Here’s what I propose:
Instead of dumping Governance tokens like CRV and UNI, let’s bring them back into their respective Vaults and keep the “yield” as a paper yield, as an Unrealized Gain.
Those who wish to sell their UNI or CRV are free to do so. And those who like to keep their Governance tokens are also free to do so.
Why does this matter?
By default, less Governance tokens would be getting dumped, changing the perception of Yearn from short term profiteer to long term collaborator and Ethereum ecosystem participant.
In protocols where minimum representation thresholds are difficult to breach, this vision can become a reality via Governance delegation portals such as Andre’s yuni.finance, which already has over 8 MILLION UNI tokens delegated to represent the Voice of the Yearn Community in UNI Governance
Everyone wins. Short term traders are free to sell these Governance tokens as they choose, price suppression of these tokens is mitigated, and the Yearn Community expands its signature goodwill.
Some may say that this plan is no different from the current Yearn approach, as anyone can use their Vault specific profits to buy any other Governance token that they see fit.
While this is true, the Big Difference here is that this is a major Shift in Yearn protocol Perception.
Perception shifts away from short-term Profiteer and Dumper more toward long-term Participant and Collaborator.
This mental shift in perception changes the narrative around the Yearn Ecosystem into more of an Ethereum Governance Union that can represent an ever widening constituency to participate in the future progression of many of the other Ethereum protocols that we know and love.
Is this crazy? Crazy good maybe?
Please share your thoughts.
P.S. After a significant number of comments below, many seem to like the idea of having two distinct Vault options.
- Instant Yield Vaults
- Gov Token Accumulation Vaults
The GTA Vaults could include portals to access yuni.finance, for example, for UNI token delegation and other such Ethereum Governance Union initiatives in the future.
Please weigh in and throw a few punches.