YIP-10: Change the Delegator Reward Distribution
Abstract The proposed delegator reward distribution in YIP-2 does not reward YAMv1 delegators sufficiently. 242,953 YAMv1 delegated to save YAM, yet according to YIP-2 only 173,588.83 YAMv3 will be awarded. This isn’t even a 1:1 reward. Under this model, delegators will receive a fraction of their original delegated amount as rewards. This proposal would remove the flat-reward model specified in YIP-2, correctly quantify the amount of YAMv1 delegated, multiply this amount by 2x, and distribute them by address on a pro-rata basis.
Motivation YAMv1 delegators are not getting sufficiently compensated for doing all they could to save YAM. Individuals who delegated, exited the YAM/yCrv pool which was yielding 100% ROI. These individuals also implicitly committed to staying out of the pool for 3 days and essentially missing out on a 300% ROI.
The official YAM twitter even indicated that the original intention was that delegators would get “significantly more” YAM than those who remained in the pool. https://twitter.com/YamFinance/status/1293739908721446912 Under the current model proposed in YIP-2, this is not the case.
YIP-2 calculated delegator rewards of 173,588.383, while 242,953 YAMv1 was delegated to save YAM. The proposed rewards do not even account all the YAM that was delegated to save YAM (https://raw.githubusercontent.com/yam-finance/yam-protocol/master/yam_delegator_snapshot_10650187_draft.json).
Proposal
- Correctly account for all the YAMv1 that was delegated (242,953), and multiply that by 2x.
- Distribute this amount as YAMv3 (485,906) on a pro-rata basis to addresses in this file (https://raw.githubusercontent.com/yam-finance/yam-protocol/master/yam_delegator_snapshot_10650187_draft.json) according to the percentage delegated.
Total YAMv3 delegator rewards would be 485,906 instead of 173,588. Total YAMv3 supply would be:
3,726,411 (YAMv2) 1,100,000 (YIP-2 YAMv3 Liquidity Incentives) 485,906 (Delegator rewards) = 5,312,317
Note: This excludes the 1m additional YAMv3 reserved for Treasury, which is under vote in YIP-8. https://snapshot.page/#/yam/proposal/QmfNyNy72CTEDZL4d38vxhEcMuoVSPqZYigSWCPShCyXu6
FOR: Change the YAMv3 delegator rewards as specified above. AGAINST: No changes.
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 0x0525...2f43f4 | 77,404 | AGAINST: No changes |
 0x731D...aC1722 | 61,816 | AGAINST: No changes |
 0xa0f7...1e9b73 | 58,343 | AGAINST: No changes |
 0x65C0...E10160 | 55,000 | AGAINST: No changes |
 0xCa84...b43000 | 51,470 | FOR: Change the YAMv3 delegator rewards as specified |
VOTE POWER
Proposal Status
- Tue August 25 2020, 05:00 pmVoting Period Starts
- Fri August 28 2020, 05:00 pmEnd Voting Period
Current Results
1-AGAINST: No changes
521,400.559
2-FOR: Change the YAMv3 delegator rewards as specified
135,841.192