Proposal for YAK to govern ve tokens

Expanding YAK to Govern ve Tokens

We propose that YAK adopt an additional utility: governance over voting power from ve tokens.

Expectations for Additional Benefits

Examples from other ve systems have shown that those with large ve balances may also receive additional benefits to voting power:

• Bribes for casting votes in a certain way
• Platform revenue distributions
• Directing reward weights to benefit themselves
• We cannot guarantee that things will play out exactly the same way on the new ve platforms on Avalanche, but it may happen.

This proposal aims to provide supplementary benefits from the ve balances to YAK by default, meaning that protocols carrying out economics bribes would be incentivized to look at YAK holders rather than yy token holders.

Ultimately, this proposal extends the utility of YAK, aligning governance of the platform to a single token. We expect that platform fees from specific ve tokens will accrue to staked yyTokens and other benefits will accrue to YAK. These variables can be easily tweaked to ensure a healthy ecosystem and allow us to adapt quickly to the changing landscape.

From a technical standpoint, we consider that using YAK to cast votes in underlying systems is the safest and most future-proof approach. We will determine how to proxy votes and avoid governance manipulation just once for YAK instead of many times for every new ve balance we accumulate.

You can read the initial proposal in the Medium Article here:

https://yieldyak.medium.com/10-000-yak-to-rule-them-all-our-proposal-for-yak-to-govern-ve-tokens-f24121a713d0