YAM v2 to v3 Migration Vesting - RFF

This is posted for feedback before submission as a formal proposal

YAM FAM Migration Vesting

Objective

Encourage YAM price appreciation by temporarily restricting the supply of YAM during the v3 relaunch.

Summary

YAMv2 that is deposited in the YAMv3 migration contract will become available to withdraw and use according to the following schedule:

  • 50% available immediately upon v3 launch;
  • 50% to become available (vest) continuously over the first 30 days after v3 launch.

YAM paid out to liquidity providers in Uniswap pools will be available to withdraw and use according to the following schedule:

  • 50% available immediately when the incentive is claimed;
  • 50% to become available (vest) continuously over 90 days after the incentive is claimed

YAM that is awarded to addresses that delegated votes in the attempt to save YAMv1 will be available to withdraw and use according to the following schedule:

  • 100% to become available (vest) continuously over the first 90 days after v3 launch.

Rationale

It is desirable to head into the initial YAMv3 rebases with a price in significant excess of the target price of $1.00. This will help build excitement for the return of YAM and to seed the YAM treasury to fund the purchase of assets and future experiments to expand YAM.

When v3 launches, there will be users who do not yet own YAM who want to purchase YAM to take part in the experiment. This demand to purchase YAM will put upward pressure on the price. By restricting the amount of YAM initially available to buy on the market through the vesting recommended in this proposal, this may improve the price heading into the initial rebases.

Vesting of tokens, including vesting of YAM awarded to addresses that delegates voted in the attempt to save YAMv1 and YAM awarded to liquidity providers, will also help to align incentives and to encourage longer-term engagement with the YAM platform.

6 Likes

I’m interested to hear community feedback on this. Of course, those with long term belief in the protocol will recognize this as an obvious value add.

But even dumpers will be able to take profit and also stay invested in the future.

I support this proposal.

8 Likes

I support this proposal, given that the implementation from a developer point not slowing down v3 release too much.

5 Likes

I think that tapering in the YAMv3 supply is going to be good for everyone. Vesting 50% immediately ensures a good UX for users and plenty of liquidity available for the Uniswap pool.

4 Likes

I support vesting wholeheartedly!

Curious about the 50% 30 day vest for migration vs 50% 90 day vest for LP rewards. I wonder if we should just have same vesting schedule applied in both cases for simplicity?

3 Likes

Can we give this man an award :joy: I’m very glad to see this proposal had passed. Great ideas and we’ll documented. If there was a vote to keep you closer to the community I would support. These ideas are all valuable. I’m proud of the YAM family. Peace :v:

I really think we are building the most fair launch in DeFi now that we have included vesting. This protects the community by lowering the risk of dumping. We should incentivize longer term holders to liquidity mine for longer with increased rewards over time somehow?

This video is a MUST WATCH! It’s in line with the above topic https://youtu.be/rHIL2bMA8uE

starting at 49:47

You will all get a great insight on the ampleforth team’s take on YAM and BASED. they talk about vesting and fair launch.

3 Likes

Fair , unfair - meh. The community couldn’t have been more fair to those who trusted in it.
I think the discussion is more about trust then fairness. Everyone is out to make a buck.some get in early at higher risk and some wait until they see a community trust in a project, it’s normaly low risk but lower gains.

Hat’s off to the community and the team. Nothing is ever perfect and not all was fair, but trust has increased due to the efforts of those who led during the interim governance