The Great Yamdemption

Summary

Make Yam redeemable for between $0.207 - $0.25 per Yam. The DAO would no longer have to drain its treasury to continue funding zero results and the current discord drama reality tv show.

The Proposal

After years of Yam contributors making various efforts in different and sometimes conflicting directions, we believe that Yam has reached a critical juncture where it can either continue on its downward trajectory (~97.69% value destruction from ATH) or allow token holders to redeem the assets that they rightfully own.

The redemption price per Yam would be between $0.207 - $0.25 per Yam (depending on the actual amount of Yam owned by the treasury that will be burnt). Our proposal would allow Yam holders to redeem 1:1 for the treasury assets. For example, if you own 3% of the Yam supply, you could burn that yam and receive 3% of the treasury assets. 100% of the remaining unredeemed treasury assets will be donated to a charity after the 12 months have elapsed.

The Mechanism

This would be accomplished by transferring 100% of the treasury assets into a new smart contract. All protocol owned liquidity should be removed and all treasury Yam burnt. For 1 year anyone can send Yam to the specified contract and redeem at a 1:1 conversion ratio for the treasury’s assets. The transferred Yam will be burnt and a new placeholder token will be issued. At the end of the time period, any unclaimed treasury funds will be donated to a charity determined by a vote by the placeholder token of those that redeemed.

Conclusion

We consider that this proposal is the best way forward for Yam. The current contributors have failed to make any meaningful progress in building products that create value, all the while draining the treasury to the tune of $30k+ a month. We all need to rally as the Yam community we are and help end the attack on the treasury. Now is not the time to believe that the same team (or even a new team) can pull off a new vision or turnaround like we have believed when they’ve said this literally dozens of times before. The correct, but unfortunate, choice is that Yam should be dissolved before there is further value destruction.

1 Like
  1. This is obviously a proposal by people that have bought up Yam recently at below $0.207 - $0.25 per Yam at an attempt to profit from the current changes in Yam.
  2. Seeing the same issues as @1tx.capital I’ve aggressively acted (the reason for the drama) to stop the drain on the treasury. With YIP-114 and YIP-200 (links below) the treasury will be NET POSITIVE, we will spend less than we make and the treasury will be earning money.
  3. I believe I can bring the price of $YAM well above the price of $0.207 - $0.25 within 6 months.
  4. I believe in Yam, there’s more to it than just the treasury, we are listed on Huobi, we are fairly launched with no sales to public / VC / allocation to founders. At minimum our value should be 50% above what treasury value is.
  5. If you think so too, do not vote for this proposal. I will make our treasury net positive within 30 days.

Feel free to read my posts to find out:

I believe this sums it up

Let’s be clear, if I am allowed to finish the work that I am in process of doing (YIP-114), the treasury will be MAKING money after all expenses including contributor expenses. There will no longer be a “drain on the treasury”. The treasury will own it’s own liquidity. There will no longer be any inflation of the $YAM token. I can finish entire process within 30 days. Yam has never had a stronger foundation.

Hello @1tx.

Interesting proposal you have here. I appreciate the effort you are taking to go through the governance processes.

The Big Question

This redemption proposal is really asking the question “What is YAM doing and should it be given the opportunity to continue doing it?”

In July, when a redemption vote was last proposed, I took the time to appeal to large token holders and make the case that we were trying to build a governance model that is new and interesting, while at the same time fixing the problems that have plagued YAM since the start. It was the foundation of something bigger. I believed that then and hoped that vote would serve as a referendum as to whether what we were doing was a step in the right direction. But I have recently been told that what I was building is no longer in the DAO’s best interests and my work has been stopped.

In it’s stead, Feddas and Jpgs have proposed a paired down DAO with the primary value proposition being yield farming in Yearn Vaults. They want the treasury to be revenue positive. That’s great, but I fail to see how it is different from any one of us taking that same money and investing it in Yearn vaults. A YamDAO that doesn’t build anything and doesn’t invest in anything has no reason to exist. Simply buying back tokens and adding to POL is value neutral and won’t lead anywhere. That we have reached this point is an admission of defeat.

YamDAO has struggled to build products and attract mind-share over the last 2 years. This is undeniable, but framing this as a question of value destruction and an “us vs them” mentality is distracting from the important questions. YAM is not alone in being overvalued and having a reckoning of price. Just look at Olympus DAO, with a current marketcap -93% down from it’s peak. Like Olympus, there was a point in which YAM was significantly overvalued and the market has done it’s job to bring it down to the current level. But there are no calls to disband Olympus because there is a believe that they still can build something to restore them to their former glory. They may try and fail, but there is a shared belief.

Is there still a shared belief that YAM can build something worthwhile and become more than a treasury without a purpose? Not really. Maybe it is still possible, but nothing I have seen from Feddas or Jpgs instills confidence that they are the men for the job. To be clear I don’t think I was the man for the job either. It’s a fucking hard job and it takes time, effort, and money.

So what are our options? Let 2 people run the DAO like their own investment fund, curating a slow death and final slide into irrelevance while adding limited value to anyone or the space in general? Or as you have proposed, do we pull the plug on the life support and use the funds that have been saved in a final good deed performed by the YamDAO?

The Good Deed

We should focus on this good deed. Your proposal proposes to donate any unclaimed YAM to a charity. I like this idea a lot. We as token holders can claim our share of the treasury, winding down the project gracefully and, if done right, do some real, tangible good in the world. There is a good chance that over $1MM will be donated. That is nothing to scoff at and everyone gets to leave with a warm fuzzy feeling.

On this note, the charity or project that gets the funds should be determined at the start, or at least at the same time as the vote to proceed with implementing the redemption. Otherwise we risk a bait and switch in which voters approve the redemption but then don’t approve of the donation.

As a neutral and mission aligned choice, I propose that the donation portion be given to Gitcoin Grants as matching funds for their grants rounds. As a community we can decide if there are particular tracks that we wish to support. This also ties back to the start of YAM, where a portion of rebase revenues were given to Gitcoin Grants.

Assuming the above recommendations are implemented I will support this proposal.

2 Likes

Whoa, take some responsibility here, you were the primary contributor for the past last year. Are you done slinging mud? I fully acknowledge in my post YIP-200 that my plan is stop gap measure to stop contributors who have been increasing their own pay and:

I fully understand the position we are in and why 1tx is proposing this.
I also fully understand that my plan is to stabilize the drain and give Yam a chance at growth.
I am just asking for some time to put a plan for growth that won’t cost the treasury more than it makes in yield.

Feddas

Just wanted to say YamDao is an original OG. Anyone who was a part of defi summer has yam 1 2 and 3… Can’t remember how many there were. I hope you guys keep it going and find a way to bring it back. The brand has history and that’s worth something especially on Ethereum.

I don’t support this proposal.

I would like to see the DAO give @feddas and @jpgs.eth a chance to put forth their plan to stabilize the Treasury and return to being net positive.

They’ve already successfully cut costs for the DAO. I’m confident that they can help the treasury become net positive going forward.

There’s not much to lose at this point as overhead for the DAO is quite low. It’s a lower risk / higher reward move imho.

1 Like

I support it, it’s better than doing nothing, nobody knows YAM anymore, right

I vote for yes. The current team cannot prove that they has the ability to maintain the marketcap of the project and increase the value of treasury. They have been given so long time and so much resource in the past 1 year and a half.

I am partial agree with Feddas proposal. If the team requires more time to prove they can do something, they have to do it without using the treasury savings. In another word, team can only use the profit they generated from the treasury to maintain themselves. If that is not working, we can still do the yam redemption with the same value.

Hey @siriusye

Yes - I’m aligned with you re: Feddas proposal. I’ll let Feddas chime in with more details but my understanding is that the treasury will be net positive (revenue generated per month via Yield Farming greater than the cost to maintain treasury / yam protocol.)

I have no problem with this proposal to redeem my share in the vault. But it would be inappropriate to donate the rest of the unclaimed money to charity. Voters and active people will certainly redeem their shares after the proposal is passed, so what they donate is other people’s money, can they decide to donate other people’s money?

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The treasury is only part of the YAM project, and the fact that some people demand to redeem their shares does not mean that YAMDAO needs to be disbanded. Continue to fund the development of contributors with the remaining money, preserving the community and brand value of YAM.
You think YAM is hopeless and it’s no problem to get your share back. There are also people who are willing to continue and should also be respected.

I support treasury distribution because market is hyping different areas such as nft, music etc and noone know yam anymore and not interested with it. As additional : hodling period should be a criteria for distributing amount. Some people are holding for a long time. as example me. I’m holding for 2 years.

100% I agree.

There’s no reason why the current token holders who are voting to give up their rights to the DAO to be voting on where the REST of the money goes after they’ve voted to return their tokens.

Feddas

VOTE INFORMATION

If pro-rata wins then a new vote for the desired charities will take place.

Again, I will voice my concern as to the fact that anyone voting should not vote to give other people’s funds to a charity of their choice.

If you want to redeem your shares, that’s 100% up to you, but we should not be voting to give away other people’s funds.

You realize that you nominated a charity to do exactly the opposite of what you are saying here?

You say that with farming / revenue creation the DAO can cover these $30k+ expenses per month. Annualized this is $360,000, or 11.4% of the total of $3.15m. This means the DAO would have to earn 11.4% annually in order to just be neutral much less earn interest for holders. This is unrealistic. Lido earns interest (if added into aggregators etc.) of roughly 5%. USDC in yearn earns 2.4% (rounded). Any other strategy where you try to earn more would put the DAO in danger of counter party (lend/maple) or principal risk (Ribbon) and worse.

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1tx has used old numbers, for the past 30 days I’ve been aggressively reducing / eliminating contributor expenses and other expenses. This is the primary reason why there has been so much drama. I predict that DAO expenses should be under $10k a month all in.

I am willing to keep all DAO expenses under whatever the current yield is that I can get with my YIP 114 and YIP 200 proposal. If the yield falls, I am willing to do the work for free to maintain the treasury and basic DAO functions, to give a chance for Yam to revive at a later date.

Current status:

YIP-200:

YIP-114: