One of the best things about the yEarn ecosystem is that there isn’t any pre-mined tokens. No money was taken from VC nor did @andre.cronje attempted to IDO YFI tokens. This is as good as we can get when it comes to decentralization for a working and profitable defi project! Unfortunately, there are also downsides for not having some cash reserved:
Unable to cover expensive audits for contracts
Incentive to continue building awesome products
Fund/grants to sponsor researches in order to improve the products
General marketing and user support
Proposal
@andre.cronje has done an amazing job so far. As a community of early yield farmers, we should support his efforts. In order to do that, I propose that we capture 5% of all yields earned through yEarn to be used as a reserve for the protocol. How we plan to use it and what would be the sensible threshold for the reserve percentage can be determined in a different proposal.
Voting Signal
Voting For
Reserve 5% of all yields earned through yEarn for protocol use
Voting Against
No changes. All rewards will continue to distribute evenly among YFI stakers.
We all know that this should help the project and make it sustainable in the long term, so I am 100% for this proposal.
It is for such decisions that the governance exists!
Good stuff! Might take a while to come to this one, though.
Still have to figure out how P0 and P1 resolve + check if it makes sense to vote only with $YFI.
I believe the sooner this proposal passes the better. It doesn’t hurt to start building up the reserve funds especially now when the fees is at all time high.
I signal NO for this proposal. We first need to understand what are the value capture mechanisms that we have, which levers we can pull and how much value it actually represents before reserving a random percentage value. Why 5% and not 10% or 50% for example?
Agree with you that 5% is such an arbitrary number. We could definitely turn it into a mathematically formula based on the economic of the entire yEarn ecosystem. However, the idea behind this proposal is that we need a cash reserve, and we want it fast in order to capture as much value as possible in order to sustain and improve yEarn.
Starting small has lower risk of reducing demand and utilization in the ecosystem. Seems reasonable to start with an arbitrary small amount and then iterate in production.
Sort of a side topic on the topic of yEarn Rewards.
The yearn fee rewards contract, could possibly be increased to a 2 week reward schedule (from 1 week). This gives the benefit of the reward rate being smoother.
So if the yEarn system ends up with more irregular earnings, the reward rate would be smoother.
Very much in favor of this. @YieldBouncer can you please update this post with the Proposal number when it is live for clarity?
I’m a big proponent of rewards being in yCRV as well. Will be interesting to see if we can collectively airdrop Andre some YFI as a nice hat tip for his amazing work to date.
You get a number when proposal is submitted for on chain voting.
My feeling is that this proposal can be simplified to a one-off minting of 1000-1500 YFI which would be able to claim yCRV and whatever else we come up with for perpetuity. This would work if proposals 0 and 1 are voted against (no inflation and staking instead of burning).
I am also FOR the creation of a Rewards Reserve asap.
5% does look arbitrary indeed but since the community controls both future parameters and spending I would vote for this proposal. Let’s secure some YFI for future expenditures and plan on from there.
