Community members and contributors are moving forward with a plan to build a treasury and better incentivize developers.
After a week of at times rancorous debate, an 11-author team of
Yearn.finance core contributors and community members have submitted
today a proposal to increase the supply of YFI by 6666 tokens — a quantity worth roughly $225 million at today’s prices.
The
proposal is the culmination of a wider discussion about developer
incentives for decentralized finance’s (DeFi) original yield vault
project. While the Twitter discourse revolved around memes and namecalling, on Yearn’s governance forum debate of the pros and cons of a mint were far more sophisticated.
Community members analyzed
team token allocations for popular DeFi platforms such as Aave,
Synthetix, and 1inch, which tend to reserve around a quarter of token
supply for team members and contributors, as well as the treasury
holdings for these projects — treasuries which can be valued as high as
$4 billion for projects like Uniswap.
Yearn, by contrast, has a $500,000 treasury, and 0% of the YFI token supply was reserved to incentivize the team during the project’s “fair launch” liquidity mining event.
While
the fair launch attracted a fervent community, the team now argues that
the lack of resources make it near-impossible to effectively compete
with projects which can lure top talent away with massive war chests and
generous compensation packages.
The token mint proposal seeks to
rectify these flaws. The proposal, called “Funding Yearn’s Future,”
calls for a one-time mint of 6666 tokens, increasing YFI’s current
30,000 supply by 22%.
Of those 6666 tokens, 4444 — roughly $150 million — will be used for the establishment of a treasury overseen by the Operations Fund
and subject to Yearn’s governance, and 2222 would be used to compensate
current and early contributors. A “Compensation Working Group” will be
convened to determine the exact structure of the 2222 token
distribution.
In an interview with Cointelegraph, semi-anonymous
core contributor and co-author of the “Funding Yearn’s Future” proposal,
Tracheopteryx, said that the Compensation Working Group will present a
more complete picture of how the compensation tokens will be disbursed
in the future, but the plan will “definitely” include a vesting schedule
to protect the YFI market.
“Lots of ideas being discussed, the
goal is to protect YFI holders from dumping via vesting while also
finding something that works for the pace of DeFi,” he said. “We'd like
the work group to be composed of both core contributors and yearn
community and will be overseen by the multisig.”
Just two hours
old, the proposal has attracted over a hundred yes/no votes, with over
three-quarters of voters in favor of the plan. At the end of the week,
the proposal will likely proceed as a formal YIP that YFI token holders
can vote on.
In an interview last week, Tracheopteryx said that the process of debate has ultimately been an invigorating one.
"There
is always a lot of noise and conflict in these moments [...] but I am
far more moved by the positive creative energy exploding in our
network."
source link : https://cointelegraph.com/news/yearn-finance-team-proposes-225-million-yfi-token-mint
