Author: Pickles, non-voting secretary of the yVest S02 compensation committee
This document outlines the proposed framework for yVest Season 02, developed under the mandate defined by YIP-88. It sets out how the compensation committee evaluates and allocates vesting packages for a select subset of active Yearn contributors. The purpose is to retain and reward individuals whose work provides sustained, high-leverage value and long-term alignment with Yearn’s success.
Guiding Principle
The yVest S02 compensation committee, consisting of 5 voting members, applies the following framework to evaluate contributors for vesting allocations. The goal is to ensure a fair, transparent, and repeatable process that rewards contributors whose work has enduring impact on Yearn’s operations, resilience, and growth. These criteria are guidelines, not a formula: qualitative judgment and context play a role.
Evaluation Dimensions
Contributors are assessed across three complementary dimensions:
1. Impact
Measures the contributor’s direct and enabling value creation for the DAO.
- Revenue & Value Creation: Tangible outcomes that generate or safeguard value (e.g. product launches, integrations, improvements, partnerships).
- Execution & Delivery: Reliability in delivering high-quality work aligned with DAO priorities.
- Strategic Contribution: Work that materially improves Yearn’s long-term positioning, resilience, or growth potential.
2. Leadership & Commitment
Assesses ownership, consistency, and influence on the DAO’s culture and operations.
- Initiative & Ownership: Identifying problems, driving solutions, and leading efforts beyond narrow scopes.
- Tenure & Reliability: Sustained engagement and consistent contribution over time.
- Mentorship & Collaboration: Strengthening others through knowledge sharing, process improvement, and team support.
3. Criticality & Scarcity
Evaluates how essential and replaceable a contributor’s skills, context, or responsibilities are.
- Criticality: The degree to which their work is essential for ongoing operations or key systems.
- Scarcity: How difficult or costly it would be for the DAO to replace this role or skill set.
- Continuity: The stability and institutional knowledge they provide across cycles and transitions.
Vesting Tiers
Contributors are grouped into three tiers based on the above evaluation. Each tier represents a general allocation range and retention priority rather than a fixed amount.
| Tier | Description | Typical Profile | YFI Range | Recipients | Approx. Share of Total |
|---|---|---|---|---|---|
| Large (L) | Core strategic contributors whose work defines or safeguards Yearn’s direction, architecture, or financial integrity. Their replacement would carry high risk or cost. | Org-wide impact, cross-team leadership, deep institutional context. | 110–144 YFI | 4–6 | 50–60% |
| Medium (M) | Senior or consistently high-performing contributors who own key functions or deliver continuous value to critical systems and teams. | Domain-level ownership, proven delivery, strong collaboration. | 44–77 YFI | 6–9 | 30–40% |
| Small (S) | Emerging or specialized contributors whose work is valuable and growing in importance but narrower in scope or tenure. | Targeted expertise, early-stage contributors, retention focus. | 22–44 YFI | 2–4 | 5–10% |
Estimated total vest recipients: 12–19 contributors.
Publication and Transparency
- Once finalized, results will be published per tier, showing the total allocations and aggregate YFI amounts.
- Individual allocations or names will not be disclosed, to avoid comparisons and preserve contributor privacy.
- This approach ensures transparency at the structural level while maintaining discretion at the personal level.
Community Feedback
Community input is welcome. This proposal will remain open for feedback for 7 days from the date of its publication on the forum. Comments and suggestions can be provided directly in the forum discussion thread.
Notes
- The framework’s purpose is retention and alignment, not hierarchy; all tiers are essential to Yearn’s continued success.
- The listed numbers are estimates and not fixed commitments; they serve as guidelines for committee decision-making.
- The committee may adjust allocations for contributors who already hold active vests, offsetting new amounts accordingly.
- The goal is to arrive as close as possible to the 1,111 YFI total defined in YIP-88, though this outcome is not guaranteed.
- Tier placement is determined through committee consensus, informed by peer input and objective evidence where available.
- The framework applies to a subset of active contributors. Exclusion from this process does not imply a lack of appreciation or value. It simply reflects the committee’s limited mandate, evaluation dimensions, and the specific retention objectives of YIP-88.
- The final allocations will require sign-off by yChad, as per the YIP’s process.