[Proposal] Increase Strategist Rewards

Charging a larger performance fee makes sense. Hedge funds, CTAs, and alternative investment professionals typically use a 2/20 fee; call the 2% a management or anything else you like but it still produces diminished return for end customer on a long enough timeline. I would recommend we do away with the management fee used traditionally and implement a performance fee.

Within the performance fee we could do a bit of innovating: sliding fee’s based on complexity, fee vesting, etc. The most important thing to get right is the flexibility to distribute the funds from the fee. If a strategy does markedly better than others, whether through pure AUM or higher Sharpe Ratio (risk-adjusted performance) we would want to incentivize strategists to bring that to Yearn through higher incentives. It would be possible in these cases to allocate a higher percentage of funds that would have gone to treasury towards strategists as the pie would be bigger while operational expenditures would likely not grow.

It strikes me that it will be important to map capital and operational expenses to their end result, this is one of the value adds of crypto, transparency, right?

If anyone has compiled books for Yearn or know of anyone who is working on something like that please let me know

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