VIP 4.1: BAL Rewards Revision

SUMMARY

VIP 4 concluded with the result that current BAL rewards from Balancer should be used to buy YFV and 71.43% of that YFV should be burned, with 28.57% remaining distributed to governance vault stakers.

12025 BAL ~ 260k$ (roughly at current writing time).
28.57% rewards ~ 74282$
71.43% burn ~ 185718$

Unfortunately, due to the team’s heavy workload, we missed a critical obstacle that would prevent us from putting the result of VIP 4 into implementation. Upon further investigation, we discovered that Balancer had sent all the rewards to the contract pool addresses, rendering them inaccessible to us. In fact, we are the first and only farming protocol to receive BAL rewards from the Balancer team (due to our high liquidity and long-term focus), so perhaps it is not a complete surprise that it did not go completely smoothly. Regrettably, due to the old smart contract design of YFI, it is impossible to distribute those rewards.

MOTIVATION

While there is nothing we could have done to anticipate or change this, we recognize the value of our community’s time and want to respect the effort and consideration committed to VIP 4. As such, we wanted to put up a new community vote to give the option to receive compensation for time lost from our dev fund.

FOR: VIP 4 becomes invalid, no action will be performed.

AGAINST:
Distribute a quantity between $1 — $74,282 equivalent in YFV taken from our dev fund to governance vault stakers (price to be determined during time of distribution)

From the dev team’s standpoint, we would certainly prefer and appeal to maintain as much runway as possible within the dev fund. Nonetheless, in accordance to YFV’s Vision & Mission, we wanted to provide an option for community members who feel that they need to be made whole.

MECHANICS

VIP 4.1 Voting will start Tuesday, Sep 15, 2020 8:00:00 GMT+0 and end by Thursday, Sep 17, 2020 8:00:00 GMT+0. The implementation will be planned and announced after voting ends.

VIP 4.1 Voting will not cost gas. Stakers may also re-vote before voting ends. To avoid spam, each voter can only re-vote after a 1 hour cooldown period.

Written by

Bring True Value to DeFi — https://valuedefi.io

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