YAM token is
YAM is the governance token for Yam Finance, and an elastic supply currency. It’s the original “food coin” on Ethereum.
YAM token is used for
- Governance of the protocol
- To submit a governance proposal you will initially need 1 % of total supply.
- Minimum amount for a valid proposal is 4% of total supply.
Why would value accrue to YAM?
Every positive rebase the protocol mints 5% YAM and sells for ETH, and then yUSD. This is then kept in the treasury that is governed by YAM holders.
Possible value creation
- Future cashflows (fees and/or products)
- The removal of the rebase function and change to normal inflation.
- Umbrella protocol
- Active community
- Known brand
How does Yam.Finance work?
YAM Finance is a rebasing token similar to Ampleforth. It increases or decreases YAM supply to target a value of $1 USD per token.
YAM aims for a fair distribution with no premine, vesting or presale.
How does Rebasing work?
The price target for YAM is $1.
- Rebasing (increase or decrease in supply to reach a price target) takes place every 12 hours.
- 10% of the rebasing amount issued is used to purchase yCRV and added to treasury.
- The treasury is governed by token holders.
Read more here.
Yam is looking into removing rebase and adding a 3% annual inflation instead.