Limiting the LP Incentives in v3

We propose limiting the total number of YAMv3 tokens distributed to YAMv3 liquidity providers to be no greater than 10% of the YAMv2 supply.

The circulating supply of YAMv2 tokens is approximately 3,726,411. YIP-2 (https://snapshot.page/#/yam/proposal/Qmc1GpiLaPXRLsXw31R1RznKrMTnzmonbSn2kCXVwxUWTV) would inflate the token supply by almost 30% (1,100,000 YAMv3 tokens).

While we acknowledge the importance of incentivizing liquidity provision, early investors and early token holders should not be heavily diluted. Therefore, we propose limiting the total number of YAMv3 tokens distributed to YAMv3 LPs to be no larger than 10% of the YAMv2 supply. This would keep the doors open for the public, while protecting the current token holders from inflation.

For example, if the migration is 1:1, the total number of YAMv3 tokens distributed to YAMv3 LPs will be capped at approximately 372,641.