Abstract
Over the past month, during the trial run of YFX V4 mining, YFX encountered issues including insufficient user participation, failure to establish a robust trading ecosystem, and a continuous falling price of YFX token.
Therefore, we propose further dynamic adjustments to the current mining operations. These adjustments will be based on the actual fees collected by the protocol and the quantity of tokens boughtback and burned in the previous week. If there are no significant changes, no adjustments will be made.
Motivation
To better align the distribution mechanism of the YFX token with the trading users, YFX will primarily distribute tokens to YFX holders and traders. The platform belongs to the holders of YFX and YLP tokens, who will share the majority of the protocol’s revenue. Most of the transaction fees generated by traders will be returned in the form of YFX tokens through mining.
Specification
This adjustment will temporarily suspend Position Mining and UniSwap LP Mining features. The primary allocation of YFX and iYFX will be for Trade Mining and YFX Staking.
Following this adjustment, the initial mining amount will be set at 1000 YFX + iYFX per day, with weekly adjustments to the mining quantity thereafter. The increase in YFX issuance will primarily support YFX Staking and Trade Mining.
Future increments in YFX mining quantity will be adjusted based on the actual amount of fees collected and the quantity of tokens buyback and destroyed. Specific mining quantities can be viewed on the mining page.
Due to the significantly lower than expected user and transaction volume brought by the Genesis Referral Nodes during the initial phase, this vote will also cancel the 1M YFX reward for Genesis Referral Nodes.
If the proposal is passed, the mining parameters will be modified at 00:00 UTC on June 28.
Voting Chain: YFX, iYFX, sbfYFX, and LYFX on Arbitrum, snapshot time at 08:00 UTC on June 25.
Voting for YFXIP-3: https://snapshot.org/#/yfxcom.eth/proposal/0x1de5d539a206c139eedab97cb534530916ce4f2366882087a7d0d2be28c054fd
The vote on this proposal is scheduled to start at 08:00 UTC on June 25 and will last for two days.
