VIP 5: Value Liquidity Token Transition & Max Supply

MOTIVATION

Given that YFV was created by an anon team in the midst of an environment full of scam forks, we decided to burn the owner key and the minter of YFV to earn the trust of the community. By comparison, YFI and YFII still maintain their governance keys, so the creation of more tokens through their multisig wallet is still possible. However, there are certain tradeoffs and consequences of our approach.

Pros: As no more YFV could be minted, there was and is no chance of a rugpull.

Cons: Any protocol upgrades are impossible. For example, there is currently no ability to add more farming pools or staking pools. Locking and boosting rewards like Curve DAO did is not possible.

SUMMARY

We want to introduce Value Liquidity Token (VALUE) as a technical upgrade of the current YFV token. VALUE can be thought of as YFV v2.

YFV and VALUE will always be swappable 1:1 anytime. YFV will exist together with VALUE until VALUE issuance stops. VALUE will have access to all features and utilities currently enjoyed by YFV. In the near future, the community may decide through VALUE DAO on a complete transition to VALUE to avoid the confusion of two, co-existing governance tokens.

MECHANICS

The community will vote for (1) Approval of the restructuring plan as described above and (2) Max Total Supply for YFV+VALUE

VIP 5 Voting will start from Saturday, Sep 12, 2020 10:00:00 GMT+0 and end by Monday, Sep 14, 2020 10:00:00 GMT+0. The implementation will be planned and announced after voting ends.

VIP 5 Voting will not cost gas. VIP 5 is a special proposal vote for YFV holders and YFV stakers at stake pool v2. Voting will be based on the number of YFV that each voter holds/stakes and not on voting power. You may also re-vote before voting ends. To avoid spam, each voter can only re-vote after a 1 hour cooldown period.

Voting FOR

Pros: Liquidity migration from Balancer will be possible through the introduction of VALUE, which will give us the technical ability to upgrade farming pools. This change will unlock a whole new world of other technical expansions as well.

Cons: None, in our opinion (happy to collect community feedback), aside the short-term confusion caused by this transition that we will work hard to dispel through frequent communication and FAQs.

Voting AGAINST

Pros: No confusion, no significant technical upgrade -> less work for the team :P

Cons: Stunted YFV ecosystem growth