Update Contributor Compensation Guidelines

See the forum post here: https://forum.yam.finance/t/yip-84-update-to-contributor-compensation-guidelines/1527

Introduction

This is a proposal to update the contributor compensation framework for those who are working full and part-time for YAM. It increases the % of pay that can be received in stable-coins and changes the vesting period for YAM earned.

To understand what is changing, I recommend reading this post: https://forum.yam.finance/t/analysis-of-current-compensation-model/1526

Goals

I propose to create a more standard and simple model where contributors can elect to be paid mainly in stable-coins, up to a predetermined cap, while always maintaining a portion of their pay in vested YAM. The core goals of this proposal are:

1. Contributors being able to pay their bills.
2. Contributors core pay not being affected by market fluctuations (unless they want it to).
3. Making sure contributors have some of their income exposure in Yam to help align and incentivize.

Details

• Pay will continue to be broken down into 2 portions: Stablecoins and YAM.

  1. All contributors will be able to take up to 70% of their pay in stablecoins. This is their base pay and is expected to be sufficient for the contributor to pay their bills. This will be paid in the stablecoins, either DAI or USDC.
  2. The rest is an incentive payment in YAM, which has a new vesting graded vesting of 6 months similar to how SNX rewards are vested (linear vesting begins 6 months after YAM is earned).YAM is deposited into the stream at the beginning of the 6 month period and is inaccessible for 6 months. Once the 6 month mark has been hit, the stream starts and the funds are released over the next 6 months.

• YAM quantities paid out will be determined based on a 1month TWAP similar to how it is currently done, but streams will be funded on 6 month intervals (same length as vesting start).

• If a contributor wants to receive a larger percentage of their pay in YAM, they can do so without vesting (30% will always be vested). We expect that contributors who do this will not sell their YAM immediately.

Implementation

This proposal is to create a framework which we will then apply the current contributors as streams end and need to be updated. After discussion, this framework will be put up for a snapshot vote. Once approved, a separate proposal will be made to apply the changes to contributors. Assuming it is approved before Oct. 1st, then it would be applied to the contributors whose streams end then. “OG” contributors streams end in December and these changes would applied at that point.

The stream mechanism may need to be updated to allow for the 6 month delay in vesting. Dev work will be coordinated to make that happen.