I think lots of great points were made on this thread by a lot of voices who I respect. When I first heard this proposal from @RyanWatkins a while back, I think I had a reflexive response of “hell no” because, duh, why would I want to give up staking dividends? But thinking about it more in the context of growing Yearn, and knowing that Yearn must continue to expand and innovate because yUSD isn’t going to pay 80% APY ever again , I came around to the idea. To be fair, I think establishing the 6-month review by @DCinvestor is a great idea, and feels similar to the 6-month window of discretion that the multisig was given a while back.
I would also strongly advocate for any YFI designated to contributors to be vested, if not all at least a majority of it. I would be more open to giving YFI with no or shorter vesting to core team members who have been around since the beginning (Andre, Banteg, Klim, Trach and others), whereas newer contributors would require longer lockups. We’re here to build long-term, and I think if we want voters/YFI holders to trust us when we say that, proving that with vesting makes sense. This was mentioned in the proposal, and I understand why it wasn’t included to keep things simple but I think it makes a ton of sense.
For those asking what funds could be used for, just a few things off the top of my head include
- Paying for audits and bug bounties, shit is insanely expensive
- In that same vein, jumpstarting yAcademy so that instead of paying auditors, we have our own team that eventually generates income for Yearn
- Hiring more devs: blockchain devs are in short supply, and as everyone knows, the Yearn team is never short on ideas (see all the various Twitter posts about Andre’s project backlog), we’re just short on manpower to plan/code/test/implement ideas.
At the same time, I think if we do ask for the community to vote yes on this, we also need to commit to continued, if not improved, transparency. These funds previously would have funneled to them, so I hope to work to make it incredibly clear where all of this money is going.
And to finish my post, a couple of random ideas that popped into my head about ways we could modify things:
- If we did want to move back to paying dividends in the future, what about asking users to lock up their YFI (either as YFI itself or an LP position) for a set amount of time to receive the rewards? For instance, if we did quarterly dividend payouts, we could require quarterly lockups. This could also loop in with previous discussions of vote-locked YFI, aka gYFI (cc @Arcturus and others).
- Yearn could put the extra funds (Operations fund YFI, or other assets before we use them to buy YFI) into their respective vaults to generate yield, and potentially pay this yield out to stakers as well.