There was a snapshot vote that recently passed to allow redemption of the assets in the YAM treasury with YAM tokens, with 54% voting for, 46% voting against, and meeting 410% of quorum (2.05M YAM voting). This vote was put up without any announcement or presentation in the public governance discussion spaces of the DAO (Discord and/or Discourse Forum) and passed on a last minute push.
As a DAO, we are beholden to the will of the token holders, and so this vote passing is a big event and must be respected. With that said, we are beholden to all token holders and the fact that this vote was created in what could be considered a sneaky and underhanded way cannot be ignored. A vote of this magnitude should be thoroughly discussed and announced, with ample time for stakeholders to weigh in and vote. There are rules around creating proposals and giving sufficient notice to token holders to make a decision. An unannounced vote does not meet these criteria.
Instead of making a unilateral decision that this vote is invalid, we recommend that it be re-proposed via the proper channels and announce it widely so that all token holders have the ability to weigh in and ample time to understand the issues and vote. If those who proposed the vote believe that a treasury redemption is the will of the YAM token holders then they should have no problem with a well publicized vote.
Because the proposer on the original vote is anonymous (address is 0x99a7eDB791c290194B7d037B15E51C7aA500080A), I will get this started by posting the text from their proposal here:
How much you would receive per YAM: ~ $0.25
Yam is trading at a significant discount to its book value. This proposal would allow token holders who would like to exit to do so and allow long term holders to remain. The primary argument against doing so has been that it would hurt the projects future by draining the treasury to the point where development cannot continue. This is provably false for several reasons with the main being that well over 80% of the YAM supply is in wallets that do not move and can be seen as stagnant as well as not voting or delegating. This means that a very significant percentage of the treasury will remain to sustain years(at the current burn rate) of future development for those who decide to hodl.
This is an off chain proposal to gauge if an on chain proposal should be made in order to determine if the majority of active and voting yam holders would like to have the option to redeem their yam from the equivalent ratio of the treasury assets.
There are several simple and secure solutions for the implementation of this if chosen by the community. The most obvious and secure solution would be to utilize the exact same smart contract used by Lobis[sic] to dissolve it’s treasury holdings: https://etherscan.io/address/0x889dfe07caa0baf3814ddcd1b933d208d9913b5e
Please signal you interest in being able to redeem YAM from treasury assets. I do believe it most practical to have this window open for the period of 1 week. After this time window, the assets would be transferred back to the yam treasury and redemptions closed.
This post will be up for a week after it is posted to the discord and socials, with another week to vote on snapshot. To ensure fairness, the snapshot block for the new vote will be set to the same snapshot block as the original vote. The votes will be announced on the discord, this forum, and via the official YAM Twitter.
One editorial note: The redemption price listed in the text above is innacurate. You can see the value and composition of the treasury here. There is ~$3.16M in the treasury and the supply of YAM is 14,692,088. That Yields a redemption value of ~$0.215 per token. This number will be subject to change as the value of the treasury changes, and the number of YAM increases by 12,000 weekly due to liquidity mining incentives.
Please discuss below.