The first proposal about the future inflation of YFI is about to go live. This might be a good moment to start a discussion about how to spend/allocate certain parts of it. YIP-30 allocates 25% of YFI emission to Multisig // DAO for security, development etc.
Since yearn is a project by and for the community I think it’s a good idea to reserve a generous part of the emission and use it to start a grant program. We can use it to fund projects/ideas that add value to the yearn ecosystem and beyond. I would have liked to see a bit more emission, not because I think more incentives are necessary, but because we could use that extra capital to fund projects like a grant program.
One of the strengths of yearn is its/the community, investing in it will pay off massively in the long run. We have created a lot of “funds” out of thin air, let us use it to make the ecosystem/Defi community/world a better place.
We could, for example, have rounds like the Ethereum foundation. Or donate funds to gitcoin grants to support the wider community. I might make a concrete proposal at a later point, but for now, I’m mostly interested in what the community thinks.
If the inflation model and 75/25 split are passed, there will be 1,412 YFI emitted to the Multisig in the first year. At current prices that allows for ~$5m of value to allocate. Not bad.
Quick note: though discussed as one proposal, the allocation of 75/25 LP/Multisig split will likely be in a separate YIP, for governance housekeeping more than anything.
Agreed. I would support a significantly higher percentage of all YFI released going to the Multisig/DAO. Some would likely be sold right away to cover immediate needs. The rest could be staked for non-YFI rewards (if that is where we go), and we would have flexibility with respect to using those rewards – audits, dev grants, or even LP distributions.
I was talking about the grant program. I agree. After the migration and inflation decision, securing funds for dev and security should have the highest priority.