Abstract
Since the mining feature was launched on Arbitrum on May 23, 2024, it has not led to significant user or transaction volume growth for YFX. We propose to suspend the YFX Staking, Trade Mining, YLP Mining, and Lock YFX functions on August 14, 2024.
If the proposal is approved, the “Earn” page will remain, but the mining rewards for YFX, iYFX, and ETH will be reduced to zero.
After suspending YFX Staking, 80% of the protocol’s fees, after covering expenses such as those for ChainLink and PYTH, will be used to buy back and burn YFX tokens, enhancing the benefits for YFX holders. The remaining 20% of fees will go into the community treasury to support future product development and marketing efforts.
The decision to restart mining will be determined by future community proposal votes.
Motivation
Suspending mining will allow the entire team to focus on protocol development, improving user experience, and increasing trading volume, thereby enhancing the protocol’s long-term competitiveness.
Specification
If the proposal passes, the mining rewards for ETH, YFX, and iYFX in the YFX Staking, Trade Mining, Liquidity Mining, and Lock YFX modules will be reduced to zero.
YFX Staking: Users who have mined iYFX should vest their iYFX as soon as possible.
Trade Mining: Users should withdraw UTP promptly and avoid staking UTP in Trade Mining.
Liquidity Mining: No action is required from users.
Lock YFX: Users should claim the locked YFX that has already expired.
The newly minted YFX tokens will be significantly reduced and will mainly be used for platform partnerships, KOL rewards, and trading competition rewards.
Voting for YFXIP-5
The vote on this proposal is scheduled to start at 08:00 UTC on August 12th and will last for two days.
