The current Yearn governance mechanism puts the protocol at risk of a hostile takeover. The best immediate course of action would be to temporarily transition the protocol to a new voting contract recently deployed by Andre.
Update the ygov.finance voting page to link to the new voting contract where only YFI can be staked.
The current Yearn voting contract accepts BPT (Balancer Pool Tokens) from a pool consisting of 98% yCRV / 2% YFI. This creates a dynamic where large stablecoin holders hold a disproportionate amount of voting shares and thereby governance power, while those whom have a high proportion of YFI vs. stablecoin are underrepresented in governance. Governance should be dictated by those with the most vested long term interest of the protocol - YFI holders - irrespective of their portfolio composition. More importantly, the protocol is currently vulnerable to a hostile takeover of governance by stablecoin whales who could potentially pass a proposal to mint a large supply of YFI and disproportionately reward themselves (via favoring large stablecoin holders).
There are multiple different long term governance/voting approaches being debated, and it will take time to align on community consensus. While these are being analyzed/discussed, we should immediately transition to a temporary governance structure where only YFI can be used to vote in order to mitigate hostile takeover attacks.
The community can replace this temporary YFI only voting structure after passing a new YIP.
FOR: Governance moves to newly deployed YFI only voting contract.
AGAINST: No governance changes.
|Total for votes||13641124.8956 (77.08%)|
|Total against votes||4054142.5578 (22.91%)|
Copyright and related rights waived via CC0.