YIP-15: Delegator Reward Modificiation

Trent Elmore and Brock Elmore submit the following proposal to increase delegator rewards.

While I believe the initial proposal was well in line with the expectations set, it has become apparent that many in the community disagree with the existing reward structure. Delegators showed great faith in the team and project, took on risk in showing this support, and are extremely valuable community members.

Many argue that delegators should not only be recouped for opportunity cost, but rewarded more generally for their commitment to the project. I agree and believe that, in return, it is fair that the community ask for their continued support of the project.

I propose a modification to the flat + scaled approach proposed in YIP-2: All delegators with votes equal to or less than 20 votes will receive a flat 20 YAMv3 reward, while all delegators with over 20 votes will receive a 1:1 reward. This ensures every delegator receives at least a 1:1 reward, whereas the original YIP-2 allocated some delegators significantly more than 1:1 and some significantly less.

Rewards breakdown:

Equal to or Under 20 YAM Delegated: 2,100 delegators * 20 YAM = 42,000 YAMv3
Over 20 YAM Delegated 1:1 = 290,665 YAMv3
Total Delegator Rewards: 332,665 YAMv3

In total, this is a 92% (~159k) increase in delegator rewards, and delegators will receive 6.6% of the network, not including the potential community fund.

Rather than being immediately vested, however, these rewards will be unvested over a 1 month period, streamed on a block-by-block basis. This will promote the continued engagement of the delegator community.

In order to keep the total V3 supply in line with YIP-2 and YIP-12 potential supplies, I also propose to decrease the total LP Pool rewards from 1.1M to 940,923, following the same distribution scheme leading to ~282k in rewards the first week, decreasing by 30% each week.

I also propose that any rounding necessary to bring the supply to a whole number be left to developer discretion.

Finally, I propose that should this proposal be passed, additional proposals relating to delegator rewards will be considered invalid.

TL;DR:

  • Delegators with equal or under 20 votes receive 20 YAM
    
  • Delegators with more than 20 votes receive 1:1 reward
    
  • Total Rewards 332,665 (92% increase from YIP-2)
    
  • Rewards unvested over 1 month timeframe
    
  • Decrease LP rewards from 1.1M to ~941k
    
  • Rounding discretion to developer
    
  • No further delegator rewards proposals

My comments below were copied over from the YIP-15 Discord channel

While I am sure this will pass, I personally can’t get behind it. YIP-2 already gave out very generous rewards, over 12 hours worth of yield to people who maybe missed out on 2 or 3 hours. There is another dynamic that isn’t discussed which is that those whale delegates went on to capture a massive % of YAM. One big contributor to that was because with the rebasing being bugged, only the most savvy users (many who were the original delegate whales) were able to collect all of that YAM from pool 2. The % concentration of YAM to the top wallets doubled or tripled in that last week before migration. Feel free to cross reference the whale addresses on the json delegate list to etherscan. You will find many of those whales went on to collect millions of $ in YAM. Plenty of a reward in itself if you ask me.

I think the original YIP-2 reward already kept with the spirit of what was promised which was recouping opportunity loss plus more. This just seems excessive and will further exacerbate the concentration of YAM to the top 10-20 wallets.

4 Likes

I think the biggest overarching issue is that voting yourselves rewards is a conflict of interest. Nowhere in life (that I can at least think of) where rewards are paid out, does the person receiving the reward get to decide how large it is. There is usually a 3rd party arbiter that decides these things. I think the best thing to have done would have been to have an arbiter doesn’t hold YAMs decide the amount and whatever the decided amount would be binding. No conflicts of interest and doesn’t look as gross to the outside as a bunch of people fighting over how much money to reward themselves.

3 Likes

Don’t give too much money to greedy people. The rewards offered by core developers are already very high。We should face more new comers in the future, instead of giving too much money to the former Savior

3 Likes

it is such a shame to see the community who fights over rewards for save YAM delegation, they failed to understand that save YAM means save ourselves, if the project doomed then their token also worthless. now to me it’s looks like they are fighting over a promise for giveaway 1:1 (or even worse 3x) event.

The original YIP-2 was more than generous (it is actually far too generous in my opinion) - the people complaining about it will never be satisfied no matter how you amend it. The increases proposed in YIP-15 are unfair to people who couldn’t delegate at the time or people who brought in after bug and supported YAM to V2.

YIP-2 is well reasoned and fair - it should pass and no other amendment should be made.

4 Likes

Okay, fair enough. YIP-2 was unfair to whales, since we’re overshooting the reward may as well include everyone.

It is a slippery slope. What about those who bought yamv2 when it all looked grim, they deserve something, my grandmother ate a yam once, maybe she needs a few as well