We propose to migrate tokens from YFL to a new token with a new total supply of 88,888 (a supply increase of 71%) in order to generate funding for fair launch style liquidity mining programs and a sustainable future of product development.
This proposal is designed to both fund the project and execute a rebrand on the ticker. We are not including the rebrand etc in this first prop because the rebrand and new devs will really kick things off, and we’d like a smooth token migration first so that such an action doesn’t disrupt hot market activity and momentum. We are intending to execute this in a way which maximizes benefit to the community while still gaining approval from the community before new funds are committed to anything. The intent is to use the funding to bootstrap liquidity and development, as well as refocus the project’s product line to be synergistic and play to our strengths - community, partnerships, bridging. The two biggest products on our roadmap are a liquidity aggregator leveraging many liquidity sources, and a new product development in partnership with Ren. More details to come in the rebrand bill post-migration.
The supply increase of ~75% was chosen to be a large enough treasury to fund plans for DeFi-scale liquidity mining programs and partnerships, and a runway of development. But also intended to stay below 2x of current supply so as to not overly dilute the potential for x% appreciation or staking potential for holders. This treasury will of course be under the control of existing holders.
We will create a contract to mint the new tokens, and the migration will be executed by users using this migration tool here: https://varen.exchange/migration
Once YFL is migrated, the user will receive new tokens from the contract in one of the next blocks (exact block TBD). We will be funding the ETH gas for this, and support gas to mint migration tokens from this contract for at least the remainder of 2021. This means the contract is effectively a direct swap YFL → new tokens, but YFL is sent to a burn address instead of being swapped out from the contract itself.
When we have this contract live, we will work with team and/or market makers to LP the new token pegged at the price of YFL, to support a smooth transition with relative price parity.
-50,000 tokens will be allocated for redemption in this way 1:1; 2,000 of the 52,000 CoinGecko supply was never minted, so these will not be included in the redemption contract.
-The remaining 30,888 tokens will be placed into the treasury, owned by the protocol and will not be allocated to anything until a review and snapshot vote is held on the rebrand proposal, which will include an immersive preview of the rebrand, high level product dev, funding allocation, plans for existing YFL product code and possibly a note about partnership(s).
Finally, the remaining YFL currently in the treasury (currently ~120 YFL) and YFL LP (~10 YFL) will be withdrawn to the dev fund in order to burn for the new token when ready, and will remain in the dev fund for operating costs during this next phase (dev fund is currently down to ~2ETH).
Full remaining balance of YFL in the treasury (~120 YFL)
Approve the token migration and withdrawal of remaining YFL treasury funds
Reject the token migration and withdrawal of remaining YFL treasury funds