# YIP-200: The Next Phase of YAM

## Summary
Hey everyone this is Feddas, I've been following YAM since it's launch and a contributor since October 2020. For the past year I've been attending weekly meetings with the contributors as a YAM token holder trying to revive the value of YAM.

### The problem: Why the total value of the YAM token is lower than the Treasury Value:
1. No faith on contributors to add value to the token. Since I came back late 2021, there was 0 live projects at YAM, there was a handful of contributors none of which were working on a revenue generating project.
2. The treasury was spending a significant amount of money paying the contributors. ~$76,000/mo spent for contributors in Q4 2021.
3. Most Token holders did not want to spend the time to read and understand what was going on and how to help, instead many of them sold their tokens.
4. Macro environment is very bearish.

### My solution: First stablize, to give the potential and possibility for YAM to rebuild:
1. YIP-114 - A adjustment of current treasury assets to earn yield ~8%+ on entire treasury using blue chip Yearn Vaults. With a $3 Million, the treasury would earn ~$240,000 a year. Current treasury yield is less than 1%.
2. Discontinue minting of $YAM for yield farmers. YIP-114 discontinues the yield farming rewards for YAM/ETH LPs and creates Yam Treasury Protocol Owned Liquidity (POL).
3. I would also like to end minting of new YAM for contributor compensation. I believe YAM should be self sustaining. If expenses were managed properly, we should be able to pay all expenses with the yield generated from the treasury and have a surplus.
4. If we are to pay contributors, we should pay in 6 month vested $YAM that is market bought using yield.
5. Any additional yield should be used to create more YAM/ETH POL.
6. Go find/build/partner with projects that can provide long term value back to YAM. Solutions 1-5 are a stop gap to #6, but as long as we do not have #6, we need to conserve and actively search.

## Why?
YAM DAO is like any organization, if the money is gone, there is very little you can do to build. In the current bearish environment, it is prudent to preserve protect and consolidate, survive to fight another day.

I am an believer and investor in YAM, I am not supreme commander nor do I want to be. Right now people have lost faith in YAM, people have forgotten about YAM, people aren't interested in YAM, people have discounted what YAM can do.

Most DeFi projects start building with an idea in mind, then they find the funds to do it (if they need to). Yam on the other hand has a treasury to support a project but no real project. Here are some additional specifications to do this:

## Specifications / Poll - How am I proposing it is accomplished?
Expanding on my solution from above:
1. YIP-114 is already in progress. It's been delayed because of the politics of current contributors. I plan to personally complete the asset rebalancing with or without other contributor help.
2. My current plan is to create the POL in a multisig primarily because the transactions fail trying to do it using the on-chain transaction with the 5 day timelock to execution. It fails because if there is a buy or sell in the 5 days timelock on the YAM/ETH pool, it changes the deposit amounts.
3. Incentives will end at the same time the YAM is minted for the POL (YAM is burned if ever unwound).
4. Use the yield to buy YAM off the market and use Stablier to stream YAM to contributors with 6 month vesting.
5. Any additional will be used to buy YAM and ETH, then paired and sent to the treasury.
6. In YIP-114, I've allocated $396,000 in stable coins to a "Operations Reserve" which was primarily for contributor compensation (Designed as a 1 year runway for contributor compensation), but with this plan we won't need it. Contributors **should be** actively trying to find/build/partner with projects that can find long term value to YAM. The "Operations Reserve" will be turned into a "Builders Reserve" where this money is allocated to fund grants and business developers (anyone) who successfully get grants funded.
7. All contributor compensation and operational expenses should be limited to the yield generated from the treasury. While this will be a tough requirement to meet, I believe it is possible and it creates long term self sustainability.

PS: Yes I skipped a bunch of YIP numbers up to 200. This is for the person who I know will point this out.