This seems to be the equivalent of an equity raising round. In these rounds an early-stage venture will issue equity and in effect dilute current shareholders. The reason these work in VC is because the team has more firepower at their disposal to push the project forward. The overarching idea being that the cash raised will increase future value enough to offset any dilution. If all goes well, YFI will melt even MORE faces by minting coins, not fewer.
Some important points:
- YFI tokens are a liquid asset, and as such daily price tends to be top of mind
- We are assuming 1/3 allocation to team improves retention (with vesting)
- Treasury funds should be used in a way that improves the product’s competitiveness and increases longevity, attracting new YFI token buyers
I am supportive of this proposal, assuming raised funds will be allocated effectively going forward. To an extent, this falls on the community to use the treasury wisely in the future.