# yVest S02 Tiers & Allocation Criteria
**URL:** https://gov.yearn.fi/t/yvest-s02-tiers-allocation-criteria/14559
**Category:** Finance
**Created:** [24 October 2025 16:18 UTC](https://gov.yearn.fi/t/yvest-s02-tiers-allocation-criteria/14559 "2025-10-24T16:18:48Z")
**Posts on this page:** 2
**Page:** 1
### Author:  [@0xPickles](https://gov.yearn.fi/u/0xPickles)
#### Post date: [24 October 2025 16:18 UTC](https://gov.yearn.fi/t/yvest-s02-tiers-allocation-criteria/14559/1 "2025-10-24T16:18:48Z")
_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](https://gov.yearn.fi/t/yip-88-governance-overhaul-incentives/14551#p-35806-h-53-core-contributor-vests-season-2-11)**. 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.
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### Author:  [@system](https://gov.yearn.fi/u/system)
#### Post date: [31 October 2025 16:19 UTC](https://gov.yearn.fi/t/yvest-s02-tiers-allocation-criteria/14559/2 "2025-10-31T16:19:45Z")
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