# YIP 30: YFI Inflation Schedule

**URL:** https://gov.yearn.fi/t/yip-30-yfi-inflation-schedule/1439
**Category:** YIPs
**Tags:** rejected
**Created:** [30 July 2020 10:45 UTC](https://gov.yearn.fi/t/yip-30-yfi-inflation-schedule/1439 "2020-07-30T10:45:46Z")
**Posts on this page:** 1
**Showing post:** 28

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### Author: ![LapisLime](https://avatars.discourse-cdn.com/v4/letter/l/91b2a8/32.png) [@LapisLime](https://gov.yearn.fi/u/LapisLime)
#### Post date: [31 July 2020 02:37 UTC](https://gov.yearn.fi/t/yip-30-yfi-inflation-schedule/1439/28 "2020-07-31T02:37:03Z")

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> [@bharat2288](#):
>
> Could you explain “dilution” a bit more?

I was responding to the point raised by @hc.link that 40% inflation will not have a dilutionary yearn’s governance. 40% additional YFI would seem to dilute any current onwer’s voting power unless they increase their ownership in YFI by 40%. If the goal is for all current owners to have the same voting power in 10 years and not add additional YFI holders, then what is the point of the inflation? I am not against some dilution as I wrote in the YIP 31 thread; I would prefer that the project capture the most benefit from the YFI issued that causes that dilution:

> [@YIP 31: YFI Inflation Distribution](https://gov.yearn.fi/t/yip-31-yfi-inflation-distribution/1445/11):
>
> Any increase in YFI, however, will invariably dilute existing YFI holders. There may be good reasons for doing this, for example, to improve decentralization. Ok, current YFI holders will be diluted, and I am fine with that.
> 
> That dilution can benefit LPs or it can benefit the project. If it benefits the project, then all current the future YFI holders benefit. How? If YFI goes to LPs, then many of those LPs will sell, make money, and the YFI will end up in the hands of those interested in governing the project. There is nothing wrong with LPs making money, but those profits directly benefit the individual LPs and not the project. If, however, the YFI goes to the Multisig/DAO, then the Multisig/DAO enjoys those profits. This could be because there is a vote to sell some of the YFI or because the YFI earns rewards that go to the project for future uses.

> [@bharat2288](#):
>
> No inflation (outside of DAO) just seems like a way to bottleneck any/all distribution through means other than at the mercy of existing holders.

This assumes additional distribution of YFI should be through farming rather than purchasing. As mentioned in the quote of myself above, that adds profits to farmers/LPs when that value could be captured by the project instead. In addition, farmers can be provided yield through incentives other than YFI (e.g., aDAI, yCurve, yUSDC). If farmers are interested in more than just the yield and want to hold YFI, then rhey can use those incentives to purchase YFI.

Edited for grammar and for clarity.

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