Regarding the definition of the treasury, YAM’s 3% annual issuance , and planning of other related regulations.
Yam is a start-up company with huge potential, but full of chaos inside. It needs a set of overall planning and system to get Yam on regular track as soon as possible, reduce internal friction, and then play its huge potential outward.
As we all know, there is a huge quality gap in the crypto world, no standard model for decentralized governance to follow. In addition, the United States and G7 have sent clear messages that strict regulatory policies will be proposed for cryptocurrencies in the foreseeable future.
According to my observations on Yam’s development over the past few months, it still has several key deficiencies. In order to avoid these deficiencies affecting Yam’s positive development and leading to investor losses, also prevents the team from inadvertently causing waste of resources or inefficiency, resulting in Yam’s market competitiveness has declined; therefore, in the environment of Yam’s start-up, it is necessary to use tailor-made systems to assist these shits, so that various planning and development can be efficiently carried out on track, so as to be the first defi governance to comply with government regulations and become the model in crypto, gets investors’ fully trust, all investors and participants can obtain maximum profits and achievements in the development of Yam.
Whether in a company or in any economic system, fairness is the most important indicator. YAM needs to make all participants feel unanimously from its inception to growth and future steady development.
Several deficiencies as I found in Yam-
- The definition of Treasury: Does the Treasury only provide salary and all kind of expenses for dev team? All Yam holders have always had questions about that. Can the treasury specifically feedback Yam holders? What is the ratio? The team never made it clear.
- Financial expenditure: The dev team of Yam are mostly American, the majority of community is Chinese, a few investors are from other countries and regions. There are very differences in salary standards and behavioral culture between all parties. That caused different perceptions.
- Community communication: There are huge differences between the community and the team in treasury feedback, financial expenditure, etc., especially the huge losses of early investors in the short term makes the communication worse.
- Supervision mode: The team does not have explicit restriction on the use of crew, money, development of sub-projects, reinvestment, etc., and there is no specific plans of profits return.
- Clarify the position of the treasury:
Take it from the people and use it for the people. Since the treasury collects taxes from investors, it shall totally feedback to investors. But Yam also needs to develop and grow, the team needs to be rewarded, as well as various spending. In the past few months, investors have been so angry about short-term huge losses. On the other hand, the use of treasury funds is full of doubts by investors. In order to solve this problem once and for all, a clear system can be build to define. The best way is to divide the treasury into two equal parts—
(a) Team operational capital: The team can freely use the funds under legal needs. It doesn’t need to be approved by the community voting. However, personnel and important expenditures needs to notify the community in advance, monthly financial statements is also needed for the community to audit. If the community thinks something is inappropriate, correction voting can be proposed.
(b) Yam holders’ fund: All funds are used to feedback to holders. Without violating the current and future regulatory regulations of various governments, Yam holders can discuss how to feedback through the proposal, and executes after voting.
- Additional annually issuance of Yam:
Under the principle of fairness, each additional issuance of Yam is used for the needs of dev team, which is obviously unreasonable. It not only caused great complaints in the community, but also a negative view of Yam from the market. The team does need a controllable funds, but investors、loyal Yam holders,、market perception and market incentives also need the same fairness, so the additional issuance and distribution of Yam needs to consider the following objects –
(a) Operating Fund: The team can control enough fund, and reduce the most interference.
(b) Yam Holders’ Fund: Investors’ feedback can be clearly defined and there is no longer any doubt.
(c ) Staking: Reward for loyal Yam holders, who can obtain interests through staking. This also has a lock-up effect on market circulation.
(d) Mining: Remove the negative perception from the market, greatly increase mining benefits, and strengthen Yam’s market competitiveness.
Based on the above measurement, the original proposal of the team to issue an additional 3% each year is not appropriate. The better way is to issue a total of 5,321,000 Yam at one time, which will be released sequentially within 10 years. The maximum supply of Yam will increase from 11,461,761 to 16,782,761, averagely about 4.642% annually increase.
Measure Yam’s mcap and future potential, the market will be absolutely acceptable. When Yam is not so strong in market competition, we should give greater incentives at the beginning of the change, the token should be allocated more. After the positive development of Yam, Yam’s value will certainly be rising, and the quantity of additional issuance should be decreased by one third every year; The annually issued Yam will be divided into four parts evenly.
The following shows the amount of YAM released each year—
Regardless of whether it is reinvestment, strategic cooperation, or sub-project development, the required budgets are from the operational fund, if any insufficiency, the community will vote to decide whether to make up.
The dev team can draw 30% of the annual net profit as a performance reward, including minimum 10% for CEO. The net profit is calculated by subtracting the operating cost. The team prepares financial statements to provide community for review, but the market value shall not be calculated in the net profit. Because the team holding YAM will also benefit from mcap increasing.
In principle, the allocation is determined by the CEO (Trent), but the community will monitor whether it is reasonable.
After the net profit is deducted from the performance bonus, the remaining profit is divided into two, returning to Yam holder’s fund and operation capital.
In the first quarter of each year, the team needs to complete the previous year’s financial report, and the community needs to evaluate team’s performance and completes it by April.
The community can view the annual operating development and team’s effort, maintaining the right in revision of the performance reward ratio.
3. In terms of efficiency, communication and supervision:
The community sets up a supervision and development group, appoints three committee members, they are responsible for supervising and checking the team’s operation, its responsibilities are equivalent to the parliamentary members in democratic politics, the term is one year, from 2021/1/1 to 2021/12/31, the specific work content includes—
(1) Propose amendments to team improper expenditures at any time.
(2) Annual review and approval of the team’s financial report.
(3) Conduct assessments of team members’ work performance at any time and every year (the main assessment is conducted by Trent)
(4) A communication bridge between the team and the community, but bases on the overall best interests of YAM, does not favor any side.
(5) Suggest schemes and supervision for Yam holder’s fund on feedback related.
(6) Preparation of YAM regulations, including personnel appointment and assessment, financial arrangement/review/appropriation/emergency backup plan, proposal process and efficiency/proposal timeliness negligence other party agency rights
(7) Other matters that are beneficial to the development of YAM or the team may miss.
Those suitable candidates to serve as the committee of the Supervisory and Development Team, should meet the following conditions—
a. Possess a certain degree of software program development ability / business management ability / financial professional background.
b. Basic English communication and English writing proposal ability are necessary.
c. Be able to consider the overall situation of Yam, and give specific opinions on issues instead of complains.
d. Never had insult any other in the community.
Base on the observations over the past few months and the actual expertise and experience needed to supervise the development of Yam, I recommend Daddypig, Belikov, and myself to be the supervisory committee members. If the dev team or the community has better candidates, any suggestions for discussion are welcome.
The committee re-election will be conducted one month before the expiration, and the re-election method will be formulated in addition.
Since the committee members must actually do serious part time jobs, and assume responsibilities, it is recommended to give a basic monthly rewards of 500~1,000 BoU Yam (tentative), which shall be paid by Yam holder’s fund and paid on the 15th of each month.
Poll to Measure Sentiment
The following are the poll of the various plans of this proposal—
- Yes, I agree with this plan.
- I have opinions or other ideas on the division ratio.(please state your views in detail in your reply)
- No, do not agree.
- Yes, I agree with this plan.
- I have other opinions on the amount of additional issuance or how to use them.(please state your views in detail in your reply)
- No, do not agree.
- Yes, I agree with this plan.
- I have other opinions on the selection of committee members or rewards. (please state your views in detail in your reply)
- No, do not agree.
（For filling the translation gap, there’s another Chinese version, but only for reading reference.）