Allocate 5% of rewards to create a $1million rewards pool for YFII farmers

Summary

This proposal would make YFII a continuous high APY farming protocol, that allocates 5% of rewards towards a YFII rewards pool that is triggered to be distributed when it reaches $1million to YFII farmers over a period of 7 days, this will allow periodic high APY farming on YFII without increasing the total token supply beyond the 10 week initial supply.

Background

Currently YFII has a burn token mechanic,

Burning serves to remove supply thus adding to scarcity of tokens. The disadvantage of a token burn is that this cannot be undone, once a token is burned, it can never be unburned, hence it’s a one way token design.

Rather than token burn, the proposal is that 5% of rewards be staked in treasury, to be automatically triggered to release when the rewards pool reaches $1million USD

This will create a whole new hype cycle and increase TVL under YFII, it will bring new members into the YFII community, and it will increase YFII price.

This will position YFII as the leading farming protocol in the world, the problem with farming is that when a protocol is new, there are lots of risks associated with it, price risk, smart contract risk, founder risk, community risk, etc…. However when a protocol is mature and the risks are decreased, the farming rewards are not high anymore. This proposal positions YFII in the role of a mature farming protocol but with periodic ultra-high APY farming yields to grow its community.

The expected behaviour is that TVL under YFII will continue to grow punctuated by periods of explosive growth during the rewards distribution periods.

For:

Allocate 5% of rewards towards a pool to be distributed to YFII farmers

Against:

Keep current tokenomics

中文翻译,感谢翻译组。

摘要

新提案会使YFII成为持续高收益率的流动性挖矿协议,将机枪池收益的5%分配给YFII奖励池,当奖励池在7天内达到锁仓100万美元时分配给YFII的farmer,来保证在YFII上进行定期高APY的farming,而代币总供应量并未超过10周的初始供应量。

背景

目前,YFII有代币销毁机制,

销毁起到了消除供应的作用,从而增加代币的稀缺性。代币销毁的缺点是无法撤销,一旦代币被销毁,就永远无法被撤回,因此这是一种单向代币设计。

本提案不仅仅销毁代币,还将5%的奖励注入金库当中,并在奖励池达到100万美元时自动触发并释放该奖励。

这将创造一个全新的生态周期,增加YFII 的TVL,给社区带入更多新人,拉升币价。

使得YFII成为全球领先的farming协议,然而问题在于,新协议往往会有很多风险,涉及价格,智能合约,创始人还有社区等等。但是,随着协议日渐成熟并且风险降低时,farming的回报会变得十分有限,那么,这个提案将YFII定位为一个成熟的farming协议,同时具有周期性的超高APY的 farming yields来发展社区。

预期在奖励分配期间,YFII的TVL将继续以爆炸性增长时期为标点。

支持:

将机枪池收益的5%分配给YFII的farmer。

反对:

保持目前的代币分配。

13 Likes

Nice proposal, I think this will make more project users involved in YFII community.

say, we can set farming pools for SNX / COMP / YFI / MKR / LEND / LINK / BAL and other defi tokens equally

4 Likes

Very innovative proposal!

The farming of rewards should be available through staking YFII to maintain a high interest in the token ans support a high price, but occasionally and based on community decision, another token from a project that YFII community wants to promote could be used to farm these rewards.

An alternative to the 1 million threshold can be to set a fixed period for farming YFII rewards, say every 1st week of the month whatever the amount. That allows for a predictable cycle.

4 Likes

Excellent proposal, You have my vote and support on this. Token burns are very effective when there is a large supply of tokens, especially those that are in the billions. However ecosystems with a small supply it can be counter productive. With a max supply of 40,000 absolutely none of those coins should be burned.

c.t.
(New holder of YFII)

2 Likes

outstanding idea.
It’s gonna be a positive cycle to enhance the profit of $YFII holders and make $YFII go further.

1 Like

Agree with the direction of the proposal, and the community hopes that there will be a clear description of numerical adjustments in the formal proposal.


同意该提案的方向,社区希望在正式的提案里边有清晰的数值调整描述。

1 Like

中文翻译,感谢翻译组。


摘要

新提案会使YFII成为持续高收益率的流动性挖矿协议,将机枪池收益的5%分配给YFII奖励池,当奖励池在7天内达到锁仓100万美元时分配给YFII的farmer,来保证在YFII上进行定期高APY的farming,而代币总供应量并未超过10周的初始供应量。

背景

目前,YFII有代币销毁机制,

销毁起到了消除供应的作用,从而增加代币的稀缺性。代币销毁的缺点是无法撤销,一旦代币被销毁,就永远无法被撤回,因此这是一种单向代币设计。

本提案不仅仅销毁代币,还将5%的奖励注入金库当中,并在奖励池达到100万美元时自动触发并释放该奖励。

这将创造一个全新的生态周期,增加YFII 的TVL,给社区带入更多新人,拉升币价。

使得YFII成为全球领先的farming协议,然而问题在于,新协议往往会有很多风险,涉及价格,智能合约,创始人还有社区等等。但是,随着协议日渐成熟并且风险降低时,farming的回报会变得十分有限,那么,这个提案将YFII定位为一个成熟的farming协议,同时具有周期性的超高APY的 farming yields来发展社区。

预期在奖励分配期间,YFII的TVL将继续以爆炸性增长时期为标点。

支持:

将机枪池收益的5%分配给YFII的farmer。

反对:

保持目前的代币分配。

Hi Sabretooth, please kindly define the source of 5% rewards clearly, I’m confused of it. as you may know, YFII has on-going distribution process for profits. refer to pic.

“本提案不仅仅销毁代币” 这句翻译成"本提案不仅不销毁代币"更贴近原意。

Thanks for the translation, I have attached it to the Main proposal.

It will replace the 3% Burn token process with a 5% rewards pool that will be distributed when it reaches $1million USD.

Current distribution of profits:

  • 90% for returning
  • 5% for community fund(including develop, operation, etc)
  • 3% for burning
  • 1% for insurance
  • 1% for gas and deploy of contract

Do you meant that 88% for returning, 5% for new distribution, and no burning ? remain other proportion.

I do appreciate your proposal for promoting a larger and longer TVL, it will contribute more value for YFII.

1 Like

Is there currently 5% being allocated for community fund? Do you have the contract addresses for the community fund and insurance fund?

We can either make it 88% returning, or alternatively, allocate 2% from the community fund to the rewards pool, to keep the 90% distribution.

1M$ reward pool is a brilliance idea. This makes YFII a perpetual farming machine and keeps attracting (and locking) TVL for long term, which again, pushes YFII price up. The positive price feedback loop kicks in…

1 Like

I support this proposal. It is imperative that we pay close attention to token economy via supply and demand. Through token buy back we are able to control the supply and place them in strong holder hands via staking YFII vault. Also token burning will control excess supply in the market creating more upward price pressure. A higher price is more attractive and great for promotion attracting more demand.

I also think we should add some form of wrapped BTC to our vault program

2 Likes

Brilliant! I’m generally FOR this proposal, though the origin of 5% should be clearly defined (i.e., what numbers are changed and unchanged in the original distribution model).

This diagram is excellent! It would be good to see an english version so that it could be shared.

It will be updated later, and you can join telegram group for timely information.

I perfer the coin burn it enables passive price growth