YIP 30: YFI Inflation Schedule Source

AuthorSubstreight, DeltaTiger, Hannes Graah, Daryl Lau, yfi_whale
Discussions-Tohttps://gov.yearn.finance/t/yip-30-yfi-inflation-schedule/1439
StatusRejected
Created2020-07-28

Simple Summary

Implement an inflation schedule of 20,000 YFI over the next 8 years, with 12,802 distributed in the first 3 years, ending with a trailing tail of 1% inflation.

Abstract

  • Update the YFI mint contract to reflect new inflation schedule.

Motivation

To create an inflation schedule after the passing of YIP-0.

FOR: Implement an inflation schedule of 20,000 YFI over the next 8 years, with 12,802 distributed in the first 3 years, ending with a trailing tail of 1% inflation.

AGAINST: No changes.

Specification

Overview

  1. Adjust supply schedule to follow [YFI Inflation Schedule].
    • Beginning annual inflation: 22.384%
    • Weekly emissions reduction multiplier: 0.9937
    • Week that terminal inflation starts: 416 weeks
    • Fixed % ongoing inflation (tail emission): 1%
  2. This model will stay in place until it is stopped or adjusted.

Rationale

  • Liquidity provider yields are maintained at reasonably competitive levels in various YFI price and TVL scenarios (see modeling sheet).
  • Lower initial inflation (22%) to keep long-term rewards reasonable.
  • 8 year emission schedule to support long-term development.

Reference: synthetix/contracts/SupplySchedule.sol

Metadata

Name Value
Proposed by 0x2D407dDb06311396fE14D4b49da5F0471447d45C
Total for votes 3380.7051 (38.73%)
Total against votes 5346.6313 (61.26%)
Quorum 82.39% ✔
Start block 10560113
End block 10577393

Source: yieldfarming.info YFI Governance Information

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