Governance. Everyone talks about it but no one really does it.
While a semblance of governance can be found in any DeFi team’s Discord channel, there’s no denying that more and more conversations are run rampant with speculators talking about the price of the token with no consideration or interest in governing the underlying protocol.
For those who missed it, yEarn recently released a zero-value, worthless governance token. The token — YFI — is meant to do one job, and do it well. To this end, yEarn has launched a governance forum, a place to discuss changes and amendments to the yEarn protocol.
The official governance forum can be found at https://gov.yearn.finance/
When looking at forums like ethresear.ch it’s clear that a well-organized forum can serve as a crucial backbone for civilized discussions.
What we hope emerges is a strong community of yEarn politicians interested in bettering the ever-evolving ecosystem and the harvests that comes with it.
Please note that this forum is community-owned and operated and at the time of writing, there is no incentive to contribute to the discussions. To this, this forum represents minimum-viable discussions — all of which look to be evolved and categorized as clear avenues are established.
yEarn Governance Flow
The governance forum is a place to discuss all proposals, amendments, and desired upgrades to the yEarn protocol. This includes but is not limited to:
- Governance Frameworks
- Proposal Discussions
- Fee Allocations
- Value-Added Incentives
- Pool Additions & Amendments
- Protocol Economics
Proposals can be made by anyone, however, it should be noted that just because a proposal is submitted to the forum does not mean it will (or should) go to an onchain vote. Only those which are put to (and pass) an onchain vote will be ratified.
How to Vote
All onchain proposals will live on ygov.finance/vote. To participate in governance, you must have Meta Yield Governance shares. Now, we know this takes 10,000 IQ so bare with us.
Meta Yield Governance shares are earned by staking the Balancer Pool Tokens (BPT) representing this 98/2 yCurve/YFI pool. Your stake in the pool will issue you yGov tokens which gives you the ability to vote on yEarn proposals.
Right now, there are two Genesis Polls that are worth taking note of.
Proposal 0: YFI Supply
The total supply of YFI is 30,000. This is split three ways between the yEarn, Balancer, and Governance pools.
Poll 0 will vote on whether or not this supply should be capped in perpetuity or if the protocol should retain the ability to mint additional YFI tokens in the future as new pools come into play.
For: Allow future FYI to be minted. This will be superseded by a new proposal to discuss (and then vote) on weekly YFI allocations.
Against: The supply of YFI will be capped at 30,000 tokens.
If passed (for), a secondary poll will be launched to discuss the weekly YFI allocations to each pool.
If failed (against), no more YFI will ever be minted.
Proposal 1: YFI Fee Collection
At inception, all fees accrued from various YFI pools are aggregated via a Vault and normalized to aDAI. The current flow is that in order to claim those fees, users must burn YFI.
With Poll 1, holders will vote to keep the burning mechanism the same (for) or change it (against) to a stake based system where those who stake YFI are entitled to a pro-rata claim on the reward pool.
For: Continue burning YFI to claim trading fees.
Against: Stake YFI to collect trading fees staking, instead of burning.
yEarn governance is taken one day at a time. There is no set in stone roadmap to introduce new features. By participating in governance, you fully understand that the continued governance is entirely based upon community interest and participation.
Is there a proposal you want to see implemented? Head to the forum and let us know why.
New proposals will be added for onchain voting on a completely asynchronous basis. If there’s enough attention and people care, it will go to a vote. You can not use YFI to influence a proposal being pushed onchain and there is no formal framework (to date) for what dictates a proposal being eligible for an onchain vote.
In case you haven’t figured it out yet, YFI is entering unchartered territory. If you’ve made it this far, you’re one of the few individuals who have figured out how to navigate down the furthest DeFi rabbit hole to date.
Want YFI to go from having 0 value to a little bit of value? Then make it happen. We’ll keep shipping if you keep caring.
See you on the forum!