Request for Comment : Proposal for YFI Inflation and Supply Mechanics

I agree strongly with @gczy and @Sinsecato and am AGAINST proposal A

This is a very different project to SNX; as the above pair write, the need for inflation does not exist in a vacuum, and likewise the views of Cronje & others on future needs should be relevant - and if they are unclear or unknown, then the default position should be no inflation without reason.

There is no need for inflation for security etc. as with btc, so the comparison there isn’t relevant.

Unlike 99.9% of crypto projects, this product had product market fit before launch. There is no need to bribe users to come. There might be need to bribe them to stay, ofc.

I’ve seen many projects use massive treasuries/inflation for completely pointless goals with little accountability (Block one), to an often criminal (NEM Foundation) extent. SNX is an outlier in that regard.

Finally, the positive feedback loop for liquidity mining will still exist with very low inflation - it is the price in USD that is being paid that matters. The price of the token will naturally be higher due to scarcity, and so the incentive will still be there. High inflation conversely lowers value, so the actual liquidity incentive of high inflation vs low inflation could end up being very similar.

In laymans terms: we can give away 100 a week @ something the market prices at 8000 USD, or we can give away 1000 a week at something the market is now willing to pay only 800 for

I am mildly in favour of Proposal B, but largely ambivalent

The vision of the ‘Whales’ aligns more closely with my own - Andre should be listened to, respected, rewarded
Thanks!

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