The Road to V3: YAMv2 Interim Governance Summary

In the week following the launch of the YAM governance portal, the community has discussed, proposed, and voted on the key issues relating to YAMv3’s launch, and reached consensus regarding those specifications. At 11:59PM UTC, August 31, the YAMv2 interim governance period ended, and all successful proposals prior to that time will be implemented in YAMv3, with any additional proposals requiring on-chain approval in YAMv3.

The YAM governance portal was launched on Monday, August 24, and the launch team created two initial proposals, which included Proposal Mechanics for the governance process and YAMv3 Initial Parameters to address critical elements of YAMv3’s launch. While both initial proposals passed, the community proposed and voted to amend and add to the team’s ideas. Below is a summary of the YAMv3 launch parameters, as voted on and created by the YAM community.

Minor Protocol Updates:

• Modify reserve asset to be yUSD (yyCRV)
• Add sync() call on YAMv3/ETH Uniswap V2 pool
• Hardcode proposal (50K pre-rebase) and quorum (200k pre-rebase) thresholds
• Make voting period 2 days

V3 Initial Supply: 5,010,000

Migration: YAMv2 to YAMv3 will be a 1:1 migration with no deadline, with 50% immediately redeemable and 50% continuously vested over 30 days.

Delegator Rewards: Delegators with equal to or under 27 votes will receive a flat 27 YAMv3 reward, while delegators with over 27 votes will receive a 1:1 YAMv3 reward for votes delegated. Rewards will be continually vested over 30 days. [EDIT 13:30 (UTC) 9/4/2020: Delegator rewards will be vested over 90 days, not 30.]

Incentivized Pools: The YAMv3/yUSD Uniswap LP pool will receive awards totalling approximately 925k, with 92.5k distributed the first week and decreasing by 10% each following.

YAMv1 Missed Migration: Using a snapshot of balances at time the end of V1 to V2 migration, a multisig will be created to assist users who missed the initial migration. This assistance will not apply to any YAMv1 purchased after the migration window closed.

Gitcoin Grant Matching Pool: The Yam protocol will direct 1% of all treasury inflows to Gitcoin Grants in order to support public goods in the Ethereum ecosystem.

YAMv3 Audit: The audit will be performed by Peckshield Inc. and begin the week of 8/31. The 3.5 person-week audit is expected to be completed in the next few weeks.

While the governance process was bumpy at times, it is exciting to see what this community has accomplished and overcome in only 7 days.

Additional details regarding exact launch date and time will be subject to audit completion.

To see all YAM proposals visit our Snapshot page. For more discussion, you can view the YAM governance forum or Discord.