Formalize Yam Treasury % Allocation for Yam Ecosystem Development (including developer pay) VS Investment Strategy

Formalize Yam Treasury % Allocation for Yam Ecosystem Development (including developer pay) / Investment Strategy

Basic Summary
We’ve been discussing this but I don’t see a thread for it, so here it is:
From @rossgalloway and @Kris2f:
Determine the treasury’s % allocation that are needed for the sustainability of YAM Protocol; these include ecosystem funds/developments, core and contributing teams, future employees, etc.
VS
Treasury Investment Strategy Allocation.

Abstract
We need to determine an allocation % of the treasury that can be directed towards sustainability of YAM and ecosystem.
and
% of treasury that can be used to invest in other assets like stable-coins / ETH / Set protocol Defi Fund and ect. More info here: Formalize a treasury investing strategy and allocation

Motivation
If we can organize the treasury it will attract future investors that will add value and grow the treasury. The treasury is one of the mantelpieces of the Yam protocol. No one wants to invest in Yam and its ecosystem if we cannot properly self govern the treasury.

Specifications
For Yam sustainability I’ve seen discussion on a number of different topics which we should include in the cost:

  1. Paying the original developers that put all this together.
  2. Paying the on-going developers that we need to implement the expanded Yam protocol ie. rageQuit(), the new Yam/ETH incentivizer, Yam crop protection
  3. Ecosystem development, ie. hackathon
  4. YAMarketing.
  5. And more to be discussed.

Investment strategy allocation initial discussions seems to lean towards a more aggressive strategy than current stablecoin yield from yUSD, which APY has been diminishing. My opinion is that this needs to be done in a thoughtful organized fashion. Here’s the current proposal to formalize the strategy: Formalize a treasury investing strategy and allocation

Poll to Measure Sentiment

To keep the poll simple (current value of Treasury $2.89mm USD):
  • Greater than 50% should go to Yam Ecosystem Development
  • 50% Yam Ecosystem Development / 50% Asset Allocation Strategy (tbd)
  • Greater than 50% should go to Asset Allocation Strategy (tbd)

0 voters

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Very good idea. but the percentage may need more options…

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There are many people in the mod group who don’t have yam. Do you want to conduct a qualification review? We don’t need people without coins to be the core of yam

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may be create a proposal for that?

This proposal is overly simplistic. The vast majority of the treasury should be used to build the ecosystem. However, the ecosystem includes the treasury.

As far as developer pay is concerned, this should definitely be proposed by the team. They are the only ones that know how much time, energy and capital they have put in. They no doubt will consult with themselves and then the community will vote.

I think allocation should be discussed but until we have a ball park idea of how much the dev/contributor should be paid, allocating piece meal makes more sense than creating a strict allocation at this time.

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@Diesel Yes this is simplistic but we need to get things moving and organized, the vote to buy 250k of Defi pulse index is telling me that we have not put priorities first. Priorities would be to get a full time dev team to develop the Yam Protocol. At the same time the DPI will likely be a great buy as DEFI has plummeted in value from the initial proposal to now.

It seems that the community had a lot of support purchasing the DPI. The community voted for it and I’m pretty sure these contributors didn’t vote willy nilly. As an added benefit, the Yam protocol will likely have some ownership of the INDEX coop in the future if their respective proposal distribution goes through. Assuming the INDEX coop takes off and doesn’t do any crazy token printing, then in my opinion the secondary benefit of ownership could pay long term benefits. I believe that the DPI is a sufficiently diversified basket of good and at this time would consist of <10% of the treasury.

I like that you are putting proposals out there and these are all things that we need to think about. However, I don’t agree that allocation decisions are simple by any measure.

I’ll respond more during lunch, but I think this should be retagged as proposal brainstorming.

Lots of these things are being discussed and there will be separate proposals. Things are becoming clearer by the day and conversations like this are important. But this isn’t really a proposal yet. More of a discussion around priorities.

Not sure if its possible to change the category @feddas. if not I think on of the board mods probably can.

2 Likes

@Diesel
While I agree that it might be a bit simplistic, but needs to start somewhere to give guidelines. This can always be changed. Again we need to show organized thinking to attract new Yammers and to keep existing Yammers.
As far as support from the community for DPI, I don’t really think it was that strong. There was only ~500k votes out of ~15mm yams and the Yam/yUSD LP which holds ~35% of all yams didn’t have a vote without a painful process of unstaking/withdrawing/unwinding LP to be ready for snapshot. That being said, I think ultimately long term it is a good investment but I personally think that it is hodgepodge then I would like for a 2.8+ mm treasury which as a holder I am involved in.

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@rossgalloway
Let’s not move this to proposal brainstorming, it’s where ideas go to die at the moment. Let’s keep this discussion going. We are losing momentum quickly and we really should hammer some of these things down.

Well, I would hope that more posts in the brainstorming category will get more activity over there.

  • Compensation proposals are forthcoming from the team. They are dotting their Is and crossing their Ts as they are US based. Be on the lookout.
  • Same with future dev work proposals.
  • I think there needs to be a bit more work in specifying some of the proposals for things like crop protection, etc in order to know how much to earmark for it.

Generally though I agree! I would like for a large portion of the treasury to be earmarked for more speculative projects and less toward things like ragequit. Maybe a strategy that proposes a larger share or the treasury toward specific projects now, but a larger proportion of new treasury income to the ragequit fund for a specified time, and then a vote to rebalance in 6 months or whatever time frame is decided upon.

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500k is a medium-to-strong vote @feddas, the voting power is calculated based from the number of yams you hold divided by scaling factor. This means that 500k, at the current yam scaling factor at 5.13, is translated to 2.565M yams. 500k is roughly 10% of the initial 5.01M YAM Total Supply.

Thanks for that @Kris2f. I didn’t realize that was the case.

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Agree with you about DPI, don’t like it either, DPI index seems too risky and unstable due to youth and volatility of underlying assets, but w/e.

Voted 50%/50% on this proposal, it looks simplistic for sure, but I like the idea.

I think of this as baby steps. Can we come together to utilize our treasury? This was a pretty simple proposal and at least proves that there is demand for it to be diversified out of yUSD alone. I too hope that our allocation strategies become more robust and I think they will.

I think we should keep discussing this but more importantly figure out the team’s compensation first.

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Since we are discussing team compensation right now, I will put this on hold and create a new topic when we’ve solidified team compensation plans.