One of the best things about the yEarn ecosystem is that there isn’t any pre-mined tokens. No money was taken from VC nor did @andre.cronje attempted to IDO YFI tokens. This is as good as we can get when it comes to decentralization for a working and profitable defi project! Unfortunately, there are also downsides for not having some cash reserved:
- Unable to cover expensive audits for contracts
- Incentive to continue building awesome products
- Fund/grants to sponsor researches in order to improve the products
- General marketing and user support
@andre.cronje has done an amazing job so far. As a community of early yield farmers, we should support his efforts. In order to do that, I propose that we capture 5% of all yields earned through yEarn to be used as a reserve for the protocol. How we plan to use it and what would be the sensible threshold for the reserve percentage can be determined in a different proposal.
Reserve 5% of all yields earned through yEarn for protocol use
No changes. All rewards will continue to distribute evenly among YFI stakers.