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YamYamby0xCa845A71d1ff53E7DB7769Ae3f356AF53Fb430000xCa84…3000

YIP-10: Change the Delegator Reward Distribution

Voting ended over 5 years agoSucceeded

Abstract The proposed delegator reward distribution in YIP-2 does not reward YAMv1 delegators sufficiently. 242,953 YAMv1 delegated to save YAM, yet according to YIP-2 only 173,588.83 YAMv3 will be awarded. This isn't even a 1:1 reward. Under this model, delegators will receive a fraction of their original delegated amount as rewards. This proposal would remove the flat-reward model specified in YIP-2, correctly quantify the amount of YAMv1 delegated, multiply this amount by 2x, and distribute them by address on a pro-rata basis.

Motivation YAMv1 delegators are not getting sufficiently compensated for doing all they could to save YAM. Individuals who delegated, exited the YAM/yCrv pool which was yielding 100% ROI. These individuals also implicitly committed to staying out of the pool for 3 days and essentially missing out on a 300% ROI.

The official YAM twitter even indicated that the original intention was that delegators would get "significantly more" YAM than those who remained in the pool. https://twitter.com/YamFinance/status/1293739908721446912 Under the current model proposed in YIP-2, this is not the case.

YIP-2 calculated delegator rewards of 173,588.383, while 242,953 YAMv1 was delegated to save YAM. The proposed rewards do not even account all the YAM that was delegated to save YAM (https://raw.githubusercontent.com/yam-finance/yam-protocol/master/yam_delegator_snapshot_10650187_draft.json).

Proposal

  1. Correctly account for all the YAMv1 that was delegated (242,953), and multiply that by 2x.
  2. Distribute this amount as YAMv3 (485,906) on a pro-rata basis to addresses in this file (https://raw.githubusercontent.com/yam-finance/yam-protocol/master/yam_delegator_snapshot_10650187_draft.json) according to the percentage delegated.

Total YAMv3 delegator rewards would be 485,906 instead of 173,588. Total YAMv3 supply would be:

3,726,411 (YAMv2) 1,100,000 (YIP-2 YAMv3 Liquidity Incentives) 485,906 (Delegator rewards) = 5,312,317

Note: This excludes the 1m additional YAMv3 reserved for Treasury, which is under vote in YIP-8. https://snapshot.page/#/yam/proposal/QmfNyNy72CTEDZL4d38vxhEcMuoVSPqZYigSWCPShCyXu6

FOR: Change the YAMv3 delegator rewards as specified above. AGAINST: No changes.

Off-Chain Vote

FOR: Change the YAMv3 delegator rewards as specified
135.84K 20.7%
AGAINST: No changes
521.4K 79.3%
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Timeline

Aug 25, 2020Proposal created
Aug 25, 2020Proposal vote started
Aug 28, 2020Proposal vote ended
Jan 23, 2024Proposal updated