Following the community discussion regarding the YAM compensation, it’s become clear we need a comprehensive system to manage contributor vesting optionality. Due to the pushback on minting, it’s apparent that this is an action, if passed, that should be done extremely infrequently. As such, it’s my opinion that this initiative should be to create a Contributor Vesting Pool that creates a system for providing upside to contributors both current and future.
I believe this to be an exciting and innovative design and important DAO infrastructure that meets a critical need in the Yam organization without sacrificing our ideals of decentralization.
YAMs designated for contributor allocation and vesting would be sent to a smart contract controlled jointly by a multisig and the YAM Governor. All YAM initially sent to this contract would be unvested (locked) until called by a controller of the contract.
The controller of the contract is able to create specific vesting structures on a per address basis, drawing upon the total amount of unvested YAMs. This would allow for a specific vesting amount and schedule for a current contributor to differ in size and schedule from that of a later contributor of differing skill level.
The architecture will also allow for things like performance-based and signing bonuses.
Control of the Contract - Checks and Balances
The multisig will be able to structure and initiate these vesting allocations, though on a 5-day time delay, allowing for on-chain governance to have the opportunity to alter any decisions made by the multisig. Additionally, the multisig will create Snapshot votes for any vesting allocation it plans to enact. In this way, the Contributor Vesting Pool will balance efficiency and decentralization.
The Governor contract itself can at any time also create vesting allocations, as well as will have full control over any unvested YAMs in the contract.
This pool is meant to fund contributor upside for the duration of the protocol. While it could be added to in the future, it will be best to try to size it appropriately for the longevity of the protocol. Because it is vested, it will also not have an immediate impact on supply, and the majority of it will have no plans for vesting in the mid-term future. My personal preference would be to have this pool account for about 5-10% of the supply, leading to the contributor community in the entire lifespan of the protocol accounting for 5-10% of the supply. This is far lower than most team allocations of anywhere between 20-40% of a protocol’s supply, and is specifically not meant just for the current contributors, but to enable the protocol to continually attract talent in the long term.