Ownership of YFI minting now rests in the hands of the community.
In addition, setGovernance - the function to change the governance owner - is subject to a 3-day time lock.
Lastly, Andre has removed himself from the minter set, meaning he no longer has the ability to mint new YFI.
This means no YFI minting can be done for a minimum of the next three days.
Here’s some more context on what (and who) this entails.
What is the governance contract?
The governance contract is responsible for dictating the addresses (minters) which can issue (mint) YFI.
What does this mean?
In the immediate short-term, no new YFI can be minted as there is no minter and the time-lock prevents one from being set for a minimum of 3 days.
What does ownership of the governance contract mean?
The owners of the multsig can only set minters. Everything else regarding YFI and the yEarn protocol is determined through normal governance (33% quorum, 50% majority) using onchain voting. (ygov.finance/vote)
For more details on how voting works, please see this forum post.
What can the mulitsig do with the governance contract?
The multisig contract CAN NOT mint additional tokens. Should the community decide this should change, a vote can be enacted to add a minter so that YFI can be issued.
Should Proposal 0: YFI Supply fail, the multisig will ensure that issuance can never happen by never adding a minter, effectively capping the total supply of YFI at 30,000 in perpetuity.*
*This is likely to be updated with more finality over the coming days.
How does a multisig work?
The governance multisig is controlled by 9 community members and requires 6 signatures. This means that no transactions can be processed until the 9 signers have reached at least 66.67% consensus.
If consensus is reached, the multisig address will execute transactions on behalf of the YFI governance contract.
Who are the signers?
9 community members have agreed to act as signers of the multisig as proven by social proof from each of their respective Twitter accounts (basically their entire social reputation).
These signers (in alphabetical order) are:
Calvin Liu using this address [0xb0325DbE7fA891436E83A094f9F12848c78e449b] verified by this tweet
The community is exploring a more extensive time lock so that any major changes to the governance contract may undergo significant periods of time (in DeFi terms) before the YFI supply could ever be adjusted.
In tandem, the community will look to set up a formalized DAO, further distributing ownership of governance beyond 9 trusted community members to YFI token holders at large.
We’d like to thank the community for raising concerns about the governance contract and the potential for YFI hyperinflation. We hope that this step can serve as a short-term peace of mind until further actions are taken.