Keep seized $BAL tokens as part of operational capital instead of distributing to old governance pool $BPT stakers.
Abstract:
~891 $BAL (~18500$) tokens were sent to one of the previous distribution pools. These tokens are seized and sitting in mutisig wallet now. We either have to distribute them or keep for operational capital.
Motivation:
Since $BALs belong to BPT stakers it is essential to decide what we should do with tokens.
However, the amount of $BAL seized is 3 times lower than protocol fees generated within a week (18k vs 60k). Therefore, I propose to keep $BALs on multisig and count them towards operational capital, rather than writing custom claim contract – this solution safes time and gas.
Specification:
Largest staker should get ~31% (~5735$) of all $BAL tokens, see graph:
While this might sound impressive there is a bunch of small stakers eligible for less than 8$. Taking into account current gas prices, fact that people have to claim there $BAL themselves I argue that it is more reasonable to keep $BAL as operational capital for team.
Moreover, this proposal saves time cause we skip writing custom distribution contract.
These BAL rewards could also be utilized as another governance mechanism for YFI holders. I’m not sure how valuable having representation in Balancer governance is for YFI & yEarn (as compared to Curve) but I believe we should leave the option open.
Would it maybe be worth simply selling them off and investing them back into yCRV? They’re not currently earning any yield as is, and with yCRV they obviously would.
I think especially if this YIP is approved (which I’m guessing it will) then it makes sense to have another one to convert them into yCRV.
The value in them returns to YFI holders either way, either through filling the treasury faster and moving back to dividends, which holders can use to buy BAL if they wish, or the much less gas efficient means of claiming to get to the same place. Easy vote FOR.
