YIP-61: Governance 2.0 
  Authors 
  @tracheopteryx   @lex_node  
 
  Summary 
 A proposal to establish the future

YIP-61: Governance 2.0

<h1>Yearn Retention Packages</h1>
<p>As per <a href="https://gov.yearn.finance/t/yip-57-funding-yearns-future/9319">YIP-57: Funding Yearn’s Future <span>98</span></a>, a Compensation Working Group has been tasked with allocating up to 2,333 YFI (2,222 with 5% margin) to retain key contributors.</p>
<p>Here is the relevant part of the spec:</p>
<aside>
<blockquote>
<h2>2. Allocate ~1/3rd to vested retention packages</h2>
<ul>
<li>Out of the 6,666 minted YFI, allocate roughly 1/3rd (5% margin on either side) to retention packages in order to provide the sufficient face melt required for effective contributor stickiness.</li>
<li>All YFI allocated to retention packages will be subject to vesting.</li>
<li>Retention package details, including eligibility, amounts, and overall terms, will be prepared and presented by a <em>Compensation Working Group:</em>
<ul>
<li>Working group members are recommended by the Operations team and should include a variety of project contributors.</li>
<li>The Multi-sig approves the proposed members of the working group.</li>
<li>The working group can gather feedback and input from existing community groups or form new ones as required.</li>
</ul>
</li>
<li>Once appointed, the working group’s tasks will be to:
<ol>
<li>Finalize compensation packages</li>
<li>Finalize vesting terms</li>
<li>Identify eligible recipients</li>
<li>Prepare a Compensation plan for the Multi-sig to review</li>
</ol>
</li>
<li>After review, the Multi-sig approves the Compensation plan, or requests changes.</li>
<li>Separately, the working group is also tasked with formalizing the qualification process and retention packages for future contributors. Funding for this comes from the portion allocated to Treasury (see below).</li>
</ul>
</blockquote>
</aside>
<p>The Compensation Working Group was approved by the multisig and is composed of:</p>
<ol>
<li><a href="/u/srs-parafi">@srs-parafi</a></li>
<li><a href="/u/vooncer">@vooncer</a></li>
<li><a href="/u/ekrenzke">@ekrenzke</a></li>
<li><a href="/u/banteg">@banteg</a></li>
<li><a href="/u/milkyklim">@milkyklim</a></li>
<li><a href="/u/lehnberg">@lehnberg</a></li>
<li><a href="/u/tracheopteryx">@tracheopteryx</a></li>
<li><a href="/u/onlylarping">@onlylarping</a></li>
<li><a href="/u/yfi-cent">@YFI-Cent</a></li>
</ol>
<h2>Retention Packages</h2>
<p>The CWG has completed its work after conducting multiple interviews with team and community. Here is the result, which has been approved by the multisig and communicated directly to each recipient.</p>
<p>Total YFI Allocated to Retention: <strong>2,317</strong></p>
<h3>Terms</h3>
<h4>General</h4>
<ul>
<li>Yearn Treasury has a <strong>right of first refusal</strong> to buy back YFI at the prevailing market rate at that point from team members who wish to sell. The purpose of this is to limit the amount of vesting YFI reaching the open market.</li>
<li>For a vesting package to activate, a recipient will need to sign an agreement with their private key, outlining the full terms in more detail.</li>
<li>Attestation of recipient address, i.e. linking it to the recipient, will be done either through a well known pgp key, or through a keybase account that is linked to trusted accounts such as Twitter, Github, or Website.</li>
</ul>
<h4>Vesting</h4>
<ul>
<li>3 years linear vesting</li>
<li>6 month cliff backdated to start date</li>
<li>With clawback (all unvested YFI returns to Yearn if someone leaves or is terminated)</li>
</ul>
<h4>Tiers</h4>
<div>
<table>
<thead>
<tr>
<th>Tier</th>
<th>Vesting YFI</th>
<th>Count</th>
</tr>
</thead>
<tbody>
<tr>
<td>1</td>
<td>275</td>
<td>6 people</td>
</tr>
<tr>
<td>2</td>
<td>140</td>
<td>3 people</td>
</tr>
<tr>
<td>3</td>
<td>40</td>
<td>1 person</td>
</tr>
<tr>
<td>4</td>
<td>25</td>
<td>1 person</td>
</tr>
<tr>
<td>5</td>
<td>13</td>
<td>1 person</td>
</tr>
<tr>
<td>strategists</td>
<td>150 total</td>
<td>4 people</td>
</tr>
<tr>
<td>community</td>
<td>12 total</td>
<td>tbd</td>
</tr>
<tr>
<td>multisig</td>
<td>1 each</td>
<td>7 people</td>
</tr>
</tbody>
</table>
</div><h4>Misc</h4>
<ul>
<li>Community and multisig YFI will not be vested, but will be subject to right of first refusal like all allocated YFI.</li>
<li>While Yearn’s multi-sig has full visibility into who the recipients are, names are not published as part of this announcement as a security precaution for the recipients.</li>
</ul>

YIP-61: Governance 2.0

Yearn Retention Packages

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