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.
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.
Allocate 5% of rewards towards a pool to be distributed to YFII farmers
Keep current tokenomics
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。