BABY: Buyback and Build Yearn
AI summary
This proposal, titled "BABY: Buyback and Build Yearn," aims to change how Yearn's treasury uses its income. Instead of distributing YFI staking rewards to those who lock up their tokens, the proposal suggests using these funds to buy back YFI tokens directly from the open market. These bought-back YFI tokens would then be used to reward contributors and fund other Yearn initiatives. Additionally, it proposes to retire the current YFI governance vault and allow YFI holders to participate in governance even if their tokens are being used in other decentralized finance (DeFi) applications.
If passed, YFI holders would no longer need to stake their tokens to receive rewards, as the buybacks are intended to benefit all holders by potentially increasing the token's value. The Yearn treasury would accumulate a reserve of YFI for future strategic uses, and the governance process would become more flexible. The direct financial impact on the treasury involves redirecting funds previously used for staking rewards towards market buybacks.
Voting results
Votes over time
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🐳 Whale votes
3 votes > 5% VPFull proposal
Authors
@banteg, @lex_node, @lehnberg, @milkyklim, @RyanWatkins, @tracheopteryx
Summary
Use YFI staking rewards to buy back YFI on the open market. Use bought back YFI for contributor rewards and other Yearn initiatives. Retire the YFI governance vault as it no longer has a use, opening up for it to be replaced in the future with a regular vault. Make it possible to participate in Governance even if one's YFI is being used elsewhere.
Abstract
If adopted, this proposal seeks to:
- Replace YFI staking rewards with YFI buybacks, until further notice.
- Enable YFI that's activel…