​ Move 100% of FXS1559 to veFXS Yield

Sam did some economic modelling and strongly believes that for the current growth phase of FRAX, we should change the FXS1559 50-50 burns to 100% veFXS yield rather than burning 50% with AMO profits.

This is for a few reasons:

1.) Higher veFXS yield will lead to more FXS demand and new fraximalists entering the ecosystem to stake and lock veFXS which aligns long term incentives together. Doing this should at minimum double the current veFXS yield to 25-30% APR, significantly higher than veCRV yield which is about 8%.

2.) Burning FXS this early in the protocol’s growth phase gives exit liquidity to farmers/short term sellers when we could be re-investing the profits into creating long term veFXS stakers. Using the profits for veFXS is not the same as burning FXS because burning gives sellers a chance to exit, while increasing veFXS yield incentivizes users to become fraximalists for multiple years. In fact, Tetranode is famous for advocating for less burning of tokens (in any protocol) and more staking yield as it creates a positive sum scenario for long term holders (and not short term dumpers).

3.) Doing this should also lead to short/medium term FXS price appreciation which would make our expansion/growth faster. Although conducting monetary policy based on FXS price should be held to a minimum since governance token speculation is not something we should focus on, it is still likely a positive effect of this move.

4.) We can always re-adjust this ratio back to 50-50 (or a new ratio) per another governance discussion+vote so this is not meant to be something that cannot be reassessed.

Forum discussion can be found here: https://gov.frax.finance/t/move-100-of-fxs1559-to-vefxs-yield/174

Do you agree with this proposal?