YIP 10: Transitionary YFI Only Voting
| Author | Rewkang |
|---|---|
| Discussions-To | https://gov.yearn.finance/t/yip-10-transitionary-yfi-only-voting/481 |
| Status | Implemented |
| Created | 2020-07-24 |
| 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
Copyright
Copyright and related rights waived via CC0.