While I do think a ve-style system with gauges is a worthwhile final goal and am greatly in favor of the core of the proposal from @0xJiji et al, I’d like to know more about the “bear market buffer”.
Do we have any modeling to suggest that $30m is a “sufficient” buffer?
How long will this last us?
What will it be able to cover?
How much of it is in stables vs volatile assets that would likely depreciate during a bear market?
I would simply like to have a bit more data on this before we commit. Or does yearn budget/treasury team still have discretion under this proposal to modify the amount diverted to buybacks each month based on desire to further grow this buffer, or cover increased operational costs?
I think this also lines up with some of the questions from @syno as well.
Should we have a minimum lock for all xYFI distributions? This would encourage voting as why not while your YFI is locked up and prevent instadumping. It also gives optionality to YFI gov to pause maturation if it’s earned but not yet unlocked, for emergencies. AAVE’s 10 day wind down for withdrawals for example.
I think I follow your train of thought. So you think we are better off reflecting value in YFI through a direct link the size of the Treasury - rather than a share of the revenue destined for the Treasury?
For my simple brain it sort of seems a bit like an Amazon vs Microsoft decision. Do we re-invest all earnings into the Treasury, and use every available resource to grow the size of the business and the business balance sheet. Or do we pay a healthy and consistent “yividend” to YFI holders. Both are fairly proven ways of improving value.
One thing I am wondering is to me it feels like we are already the Amazon approach, and so prospective future YFI owners likely already see this as the way of valuing YFI. That YFI is valued according to the health of the protocol, TVL, Treasury, cash on hand etc etc. I wonder whether we are less attractive to the other type of investor, like the Warren Buffett type who wants to “own” a piece of a great business that pays them a consistent dividend year on year.
Do shut ourselves off to a different type of investor if YFI doesn’t earn a share of the business’ profit?
I glad we both agree on veYFI - this I think ticks all the boxes.