Re-submission of proposal 1 which didn’t reach quorum but decision should be made
Remove YFI burning from the protocol.
YFI represents a claim on yEarn protocol fees. To claim fees, YFI can either be burnt or staked in the governance pool.
This YIP is to decide whether or not to keep the burning mechanism.
It makes no sense to burn tokens because the price of YFI will always be higher than the claimable fee value. This is because YFI represents current assets in the fee pool plus future expected cashflows. Staking is just obviously better.
For: Remove YFI burning from the protocol.
Against: No change (start burning YFI for fees).
UPD: A bit more context since people are unaware of technicalities.
There 2 options how one can claim fees from Gov 2 pool (previously, Fee Rewards pool):
- Staking YFI to claim yCRV (locking YFI in contract, as we do now with Gov 2 pool)
- Burning YFI to claim yCRV (sending YFI to
Despite us going for 1st option we should actually be going for 2nd, see Proposal 1 weird wording.
We are not burning YFI for yCRV only cause of a chaotic start and cause this feature was pushed back a bit. If people don’t vote “for” this time – burning will go live.