YIP 10: Transitionary YFI Only Voting Source

AuthorRewkang
Discussions-Tohttps://gov.yearn.finance/t/yip-10-transitionary-yfi-only-voting/481
StatusImplemented
Created2020-07-24
Implementation https://etherscan.io/address/0xBa37B002AbaFDd8E89a1995dA52740bbC013D992

Simple Summary

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.

Abstract

Update the ygov.finance voting page to link to the new voting contract where only YFI can be staked.

Contract: Etherscan

Motivation

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.

Metadata

Name Value
Proposed by 0x09173487b272311Edda01F45f97911aEB6aBd602
Total for votes 13641124.8956 (77.08%)
Total against votes 4054142.5578 (22.91%)
Quorum 45.92% ✔
Start block 10518707
End block 10535987

Source: yieldfarming.info YFI Governance Information

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