Proposal to Improve Yield Yak Revenue Distribution

We propose changes to how Yield Yak revenue is distributed and used to grow the protocol. The aim of this proposal is to increase rewards for YAK holders and introduce aligned incentives for Yield Yak core contributors to secure the platform’s future growth.

There are two fundamental changes being proposed.

1. Increase rewards for Staked YAK from 33% to 70% of platform fees

Current: Stakers 33% Treasury 33% Contributors 33%

Proposed: Stakers 70% Treasury 15% Contributors 15%

Example of proposed changes based of 200 AVAX in daily revenue distributed from Yak ARC: 140 AVAX to Stakers 30 AVAX to the Treasury 30 AVAX to Contributors

2. Move 550 YAK from the ecosystem wallet to the contributor wallet. Use 550 YAK to secure a core team with a 2-year vesting period (released on a linear basis and streamed monthly). These tokens, in addition to the tokens in the team wallet, will be eligible for Staking rewards. This is the proposed split of those tokens to 4 new core contributors:

SlowCheetah (Developer) - 200 YAK Dylan (Marketing Lead) - 150 YAK Simon (Developer) 100 YAK Jack (Developer) 100 YAK

We expect the impact of this change to be two-fold: $YAK holders are better rewarded and YAK Staking APYs increase, even after any diluting impact from the staking of team tokens; the increase in overall rewards to stakers outweighs the dilution Securing a strong team aligned to the same goals as the community.

Additional Implications:

Contributors 15%: This will be used for development, marketing, analytics, and an operations budget. Given changes above, this is suitable for supporting non-Developer roles.

Treasury 15%: This will remain in line with the latest updates on the treasury which can be read on the Yield Yak blog. Given current revenue and experimentation with bonds, this is suitable for growing treasury.