The proposed delegator reward distribution in YIP-2 does not reward YAMv1 delegators sufficiently. 242,953 YAMv1 delegated to save YAM, yet according to YIP-2 only 173,588.83 YAMv3 will be awarded. This isn’t even a 1:1 reward. Under this model, delegators will receive a fraction of their original delegated amount as rewards. This proposal would remove the flat-reward model specified in YIP-2, correctly quantify the amount of YAMv1 delegated, multiply this amount by 2x, and distribute them by address on a pro-rata basis.
YAMv1 delegators are not getting sufficiently compensated for doing all they could to save YAM. Individuals who delegated, exited the YAM/yCrv pool which was yielding 100% ROI. These individuals also implicitly committed to staying out of the pool for 3 days and essentially missing out on a 300% ROI.
The official YAM twitter even indicated that the original intention was that delegators would get “significantly more” YAM than those who remained in the pool.
Under the current model proposed in YIP-2, this is not the case.
YIP-2 calculated delegator rewards of 173,588.383, while 242,953 YAMv1 was delegated to save YAM. The proposed rewards do not even account all the YAM that was delegated to save YAM (https://raw.githubusercontent.com/yam-finance/yam-protocol/master/yam_delegator_snapshot_10650187_draft.json).
- Correctly account for all the YAMv1 that was delegated (242,953), and multiply that by 2x.
- Distribute this amount as YAMv3 (485,906) on a pro-rata basis to addresses in this file (https://raw.githubusercontent.com/yam-finance/yam-protocol/master/yam_delegator_snapshot_10650187_draft.json) according to the percentage delegated.
Total YAMv3 delegator rewards would be 485,906 instead of 173,588.
Total YAMv3 supply would be:
1,100,000 (YIP-2 YAMv3 Liquidity Incentives)
485,906 (Delegator rewards)
Note: This excludes the 1m additional YAMv3 reserved for Treasury, which is under vote in YIP-12.
Currently being voted on-chain:
Added here for deeper discussion.