Please note that what follows is simply my summary of our governance system. Others may disagree with certain interpretations, and none of my subjective comments below should be considered edicts that the community is required to follow.
Additionally, I feel obligated to let the community know that I have recently received a donation for my work here from some of the founders of YFL as a thank-you for my continued work on YFL governance. I am happy to disclose the donation address for individuals who wish to know the extent of my YFL holdings, or if others wish to help support my governance work - please DM me on Discord for this.
This post is designed to serve as a constantly updated resource for the community to keep them apprised of changes in YFL’s governance structure. Below you will find an explanation of the voting process, plain language explanations of various passed proposals, and information for individuals who seek to write and submit proposals of their own to the YFL ecosystem.
Community voting is the core of the YFL ecosystem. Anyone with >0.1 YFL is eligible to participate in on-chain governance by voting on proposals or submitting a proposal of their own.
Currently, all voting is done on-chain (though we are exploring ways to integrate off-chain voting with Snapshot). This means that individuals wanting to vote must stake their YFL in the Governance Pool though the YFL website.
Votes last approximately 96 hours from the time that they are published. During this period, individuals who vote are subject to the following restrictions that are inherent to the voting smart-contract.
- Tokens are locked in the Governance Pool until 17280 blocks (~96h) after they cast their vote
- Individuals may not deposit additional tokens into the Governance Pool from a wallet that has already voted.
After the passing of Prop6 all proposals are subject to minimum quorum of 20% of all YFL locked in the governance contract, and an agreement threshold of >50%. (Please see the explanation of these terms in the plain-English explanations below.
Proposals are the legislative documents of YFL. Their contents are binding and obligatory on the ecosystem and its participants. While some proposals are enforceable by smart-contracts, there is no requirement that they must pertain to on-chain activity. Proposals have been interpreted in a textualist manner, which should be kept in mind when writing new proposals.
Any individual is able to submit a proposal draft to the governance forums, but a minimum of 0.1 YFL staked in the governance contract is required to initiate on-chain voting for a proposal.
After the passing of Proposal 10 (Prop10), proposals are required to follow a set of rules around formatting, timing for public notice and comment, as well as proposal content. Individuals seeking to write proposals should read and understand these rules carefully, as failure to abide by them will result in their proposal being considered void.
Currently there exist two treasuries:
The YFL Treasury – currently located at address 0xc426bbd2e58932db81505a0f835ad910fbfc19d7 – is a pool of YFL that is community owned. At the time of this writing (9/10/2020) it also contains 1,388 vested YFL for Team 01, as well as the Proposal Rewards Pool established by Prop5
YFL Community Treasury Pool (the Stablecoin Treasury also referred to as the YCTP) – was established by Prop4. It has not yet been created, but it is a separate entity from the YFL Treasury.
These two treasuries do not currently share funds, and for the purposes of governance are considered to be two entirely distinct entities. Proposals that reference one should not be assumed to affect the other.
Proposals are referenced according to their numbering on the YFL Governance Forums, not their on-chain voting ID.
Proposals 1-3 were written and voted on before the start of governance standardization and, in the view of this author, are not important for understanding the current governance landscape of YFL. We also will not review rejected proposals here.
Proposal 4 - Establishment of a Treasury Fund
Prop4 created a multisig treasury pool (the Stablecoin Treasury (ST)) distinct from the YFL Treasury to act as a general fund for the YFL community.
- The multisig keyholders are currently Shaftoe, Roy, and KyleW. The proposal mandates that a new proposal to reconsider/maintain these holders be made after 90 days from proposal passage (Nov 9th, 2020)
The ST is capped at $100k USD in value, and is required to hold its funds in a stablecoin.
The Stablecoin Treasury is funded by “all revenue generating projects”, unless a subsequent proposal specifies otherwise.
- 100% of revenue is by default deposited into the ST until it hits its upper limit of $100k USD
- There is no clear criteria defining what projects are subject to this requirement, which is a major flaw in the proposal. A refinement of the treasury system is being developed
Proposal 5 - Proposal Reward Structure
Prop5 allocated 1% of the YFL Treasury to be paid out as incentives for successfully passed proposals. This pool is referred to as the Proposal Reward Pool (PRP)
The reward structure allocates:
- 3% of the PRP to the proposer for a successfully approved proposal
- 9% of the PRP for a successfully passed proposal that won with >66% of the vote.
Proposers are able to opt-out of rewards if they so choose
Prop5 does not specify if rewards should be paid to the writer of the proposer, or the address that submits the proposal on-chain.
- Thus far rewards for eligible proposals have been sent to the writer’s address of choice.
Proposal 6 - Establishment of Quorum & Agreement Thresholds
Prop6 established two important requirements for vote passage:
- Quorum – The minimum fraction of votes that must participate for a proposal to be valid. This prevents individuals/groups with very tiny fractions of the voting pool from passing propositions if nobody is paying attention
- Agreement Threshold – The percentage of votes that must vote FOR in order for a proposal to pass
Prop6 establishes a baseline for all on-chain proposals of the following:
- Quorum – 20% of all YFL staked in the governance pool(s) at the time of vote end
- Agreement threshold - >50% (i.e. a simple majority)
Other proposals are free to increase these standards as they like, but they cannot decrease the thresholds
Proposal 7 – Published draft
Proposal 8 – Rejected modification to Proposal 5
Proposal 9 – Published draft
Proposal 10 - Standardized Proposal Rules/Requirements
Prop10 establishes a set of rules written proposals are required to abide by to be considered valid proposals within the governance structure of the YFL ecosystem. We will not reproduce the entirety of Prop10 here, but include some highlights. Individuals wishing to write their own proposals should read Prop10 closely.
Introduced the concept of proposals needing to be minimally actionable - That is, they must outline some sort of action, requirement, guideline, etc. that is intended to guide, alter, or compel behavior of the YFL ecosystem and/or its participants.
Introduced the concept of voided proposals, which are essentially treated as nonexistent for terms of governance.
Proposal 11 – Requisitioned 400 YFL for the funding of Team 02.
Proposal 12 - Accelerated Voting
Prop12 created expedited voting rules - Accelerated and Critical - that allow governors and proposers to address urgent issues in governance rapidly, but with more stringent requirements for quorum and voting thresholds to prevent abuse
These designations cannot be used for funding of new projects
“Accelerated” proposal specs:
- Duration of notice & comment reduced to 48h
- Duration of on-chain voting reduced to 48h
- Quorum requirement increased to 50% of YFL locked in the governance pool at the time of on-chain vote start
- Agreement threshold increased to 66%
“Critical” proposal specs:
- Duration of notice & comment reduced to 12h
- Duration of on-chain voting reduced to 24h
- Quorum requirement increased to 66% of YFL locked in the governance pool at the time of on-chain vote start
- Agreement threshold increased to 75%
Proposal 13 - Requisitioned ~47.69 to fund the NFT Project
Proposal 14 - Treasury Revamp
Prop14 substantially overhauled the treasury, consolidating the YFL Treasury, the PRP, and the Stablecoin Fund into a single 2-of-3 Multisig wallet, the keys of which are currently held by @Startale, @MeanMachineX, and @Palis.
- Key holders will be voted upon again on Jan 6th, 2020
The new treasury is at address: 0xE69A81b96FBF5Cb6CAe95d2cE5323Eff2bA0EAE4
Proposal 15 - PRP Restructure
Modified the PRP payment structure to a flat reward of:
- 2 YFL for >66% agreement threshold
- 1 YFL for any successful proposal that wins <66% of the votes
Funded by a generous donation from @Shaftoe
Proposal 16 - LINKSWAP Marketing funding
- Requisitioned 20.2 YFL to wallet 0x743558b6716f77b648DF673FF9896Ee47E5507cF for LINKSWAP marketing efforts
Proposal 17 - Published draft.
Proposal 18 - Failed request for additional funds related to LINKSWAP development costs. This and Prop19 were boycotted during the LINKSWAP delay.
Proposal 19 - Failed request for funds related to the LINKSGIVING Holiday Giveaway.