VIP 4: Balancer Rewards & YFV Token Burn

SUMMARY

This VIP comes from an excellent pre-proposal sourced from the YFV community governance forum regarding treatment of BAL rewards from Balancer Pools (link here). The team found this idea to be extremely interesting and strongly in line with our Mission & Values, and wanted to bring this up as a VIP for community voting and implementation. A huge thank you again to the community for your great input, ideas, and enthusiasm for driving the YFV ecosystem forward.

MOTIVATION

On the weekly basis, $BAL rewards are sent from Balancer to YFV balancer pools. Currently, there is a total of 12025 $BAL from 8 YFV balancer pools.

A portion of these $BAL rewards can be used to buy back YFV and burn it, with the remainder distributed as $BAL or $YFV to YFV Stakers in proportion to their voting power.

Burning $YFV will reduce the total supply of YFV, creating scarcity and returning value to YFV holders and the ecosystem in terms of price.

MECHANICS

The community will vote for (1) what percent of the weekly BAL rewards will be used to buy back and burn $YFV and (2) whether the remainder of the rewards will be directly distributed as $BAL OR used to buy $YFV and then distributed pro-rata to YFV stakers.

These remainder rewards will be claimed using the frontend interface by YFV Stakers, again in a manner proportional to their voting power.

VIP 4 Voting will start from Friday, Sep 11, 2020 10:00:00 GMT+0 and end by Sep 12, 2020 10:00:00 GMT+0. The implementation will be arranged as soon as possible after voting ends.

VIP 4 Voting will not cost gas. All YFV Stakers will be able to vote without hindrance. Stakers may also re-vote before voting ends. To avoid spam, each voter can only re-vote after a 1 hour cooldown period.