I want to briefly bring up some of my thoughts relating to delegator rewards, as this has been a sensitive subject for many community members. Many believe the current YIP-2 proposal gives too few rewards, many believe it gives too many.
My understanding of the communications from the Yam Finance twitter account was that there is an opportunity cost to delegating and that those who do delegate will be recouped for that opportunity cost with a bonus.
In the 12 hours in which delegation was requested, there was 107k YAM distributed to Uniswap LPs. This serves as a base for the total opportunity cost of delegating YAMs, as once the bug was discovered to completely brick governance, delegation was no longer useful. I believe the proposal of ~173k YAMs to reward delegators meets the original goals communicated by the team of recouping opportunity cost with additional bonus, as it is a 61% increase to total lost rewards during that time.
I understand there are conflicting opinions on this issue and welcome deeper discussion, as well as alternate proposals for delegator rewards.
Wouldn’t something like 25% flat, 75% scaling be more fair?
Apologies if the following idea is already widely circulating … since there are so many small-value YAM holders who delegated at significant gas fee cost relative to their holdings, I would like to see delegator rewards come in two parts. Reward component r1 would be proportional to holdings, as already widely discussed. Reward component r2 would be a fixed per-address amount intended to reimburse all holders for gas fees invested to delegate YAM (which again were a significant fraction of holdings for the smallest holders).
The reward for each delegator is then R = r1 + r2 where r1 = (user’s YAMs delegated)/(sum of all delegated YAM) and r2 is on the order of 1 YAM (which is currently close to the gas fees expended to delegate at the time).
It’s shameful to bribe for election. In the future, people use money to buy votes. So stop rewarding
This is what the team have offered on YIP-2, and i think this is the best for all, but of course it might not please everyone, especially the greedy one.
Looks good. Project was an unaudited experiment which many people never even partook in. The people who took the risk are a big reason for why the project even received funding for audits. A reward is fitting for bringing it to the those who heeded the risk warning. However I don’t think it makes a whole lot of sense to reward those who did risk a lot, the risk was always upfront and apparent. 173k yams is adequate, and it doesn’t need to be more than that, it doesn’t need to be some huge payoff it was never delivered as that. We tested the project and out of the ashes pulled through and have a deliverable product, thats the real victory.
The way this has turned out has already put enough yams in the pockets of early adopters. Too much in my opinion, those who heeded the warning and were cautious, and took what turned out to be good advice should be welcomed into the family. Not a very welcoming one where 85% of the tokens are already held (almost like we premined it) this is supposed to be DeFi. If the community fund doesn’t go through, we’re not even “with open arms,” we’re cold shouldering them at > 95% yams effectively premined.
This needs to work for all of the community. If you price out the smaller community members you will probably lose 70% of the community. Not a great future outlook for the project. The proposal needs to be considered
@YaM thanks, I missed it on the Discord but see it on the yam.finance governance page now The half-and-half model is even more generous to small holders than I was envisioning and should certainly be enough to make up for everyone’s delegation gas fee. YAyM!
What do you mean by flat and scaling here?
I believe the 173k is enough. In the first place, everybody invested knowing that the code has not been audited yet. It was a huge risk and unfortunately it went to the worst case scenario instead of what we are expecting when we invested. That’s part of the risk, isn’t it? We have to be contented with what is good for everybody including the small holders.
We only spent a few fees when we voted, and the official returns were more than enough to meet those fees. For the rich, the rewards are already considerable, so I support the official plan. After all, I believe the Yam will go back to where it was before.
Abandon those greedy people and don’t give them a dime