Yam

Objective

Encourage YAM price appreciation by temporarily restricting the supply of YAM during the v3 relaunch.

Summary

YAMv2 that is deposited in the YAMv3 migration contract will become available to withdraw and use according to the following schedule:

• 50% available immediately upon v3 launch;
• 50% to become available (vest) continuously over the first 30 days after v3 launch.

YAM paid out to liquidity providers in Uniswap pools will be available to withdraw and use according to the following schedule:

• 50% available immediately when the incentive is claimed;
• 50% to become available (vest) continuously over 90 days after the incentive is claimed

YAM that is awarded to addresses that delegated votes in the attempt to save YAMv1 will be available to withdraw and use according to the following schedule:

• 100% to become available (vest) continuously over the first 90 days after v3 launch.

Rationale

It is desirable to head into the initial YAMv3 rebases with a price in significant excess of the target price of $1.00. This will help build excitement for the return of YAM and to seed the YAM treasury to fund the purchase of assets and future experiments to expand YAM.

When v3 launches, there will be users who do not yet own YAM who want to purchase YAM to take part in the experiment. This demand to purchase YAM will put upward pressure on the price. By restricting the amount of YAM initially available to buy on the market through the vesting recommended in this proposal, this may improve the price heading into the initial rebases.

Vesting of tokens, including vesting of YAM awarded to addresses that delegates voted in the attempt to save YAMv1 and YAM awarded to liquidity providers, will also help to align incentives and to encourage longer-term engagement with all users of the YAM platform.