YLD, Tier Bonus and Tokenomics update
- Yield App is announcing key changes to support and grow the YLD ecosystem
- In the interests of maintaining sustainable Tier Bonus payouts, the “Earn in YLD (+2%)” option is coming to an end on 1 March 2022
- 30 million YLD is being added to the total Tier Bonus rewards pool
- YLD on YLD rewards will continue indefinitely
- All remaining YLD to be minted at once for full transparency and to avoid confusion
- Vesting period for team tokens doubled from two to four years
The first year since Yield App launched in February 2021 has seen us grow at a spectacular rate, accumulating nearly $500 million in managed assets and attracting more than 70,000 customers to our proposition. In order to continue on this strong growth path, we are announcing key changes designed to strengthen and support our entire YLD ecosystem.
In our founding tokenomics, we originally allocated a pool of 45 million YLD for our Tier Bonus rewards program, which was intended to reward early adopters via bonus payments on base assets deployed into Yield App portfolios. Our strong growth over the past year means this rewards pool has come to an end, however we are pleased to announce we are adding a further 30 million YLD to the pool to keep paying bonus rewards to our valued customers for longer.
In addition, we are also making some important adjustments that are designed to maintain the sustainability of our entire ecosystem as we continue to reward our most dedicated customers. You can read full details about all of these changes below.
Conclusion of “Earn all in YLD” program
In order to continue supporting the YLD ecosystem, the option to earn all your rewards in YLD to boost earnings by 2% is being discontinued. From Tuesday, 1 March 2022, all customers who have toggled on this option will automatically begin earning rewards in the base asset. If you have selected the “Earn in YLD (+2%)” option, you do not need to take any action – the transition will happen automatically on 1 March 2022.
Since deployment alongside the V2 platform, this option has proved significantly more popular than originally projected and has therefore placed continued stress on the projected YLD emissions schedule. We have therefore decided to take this step in order to maintain our emissions in line with our original projections, and in response to requests from our community.
Extension of Tier Bonus program
To keep our Tier Bonus payments going for longer, we have decided to extend the total YLD rewards pool by 30 million YLD. As a result, the total amount of YLD that will be paid out as Tier Bonus rewards to our customers will now be capped at 75 million YLD.
This additional rewards pool will be allocated from our corporate treasury to extend the life of our Tier Bonus program. Once this additional 30 million YLD bonus is used, YLD rewards on base assets will come to an end. As per our founding tokenomics, this rewards pool was intended as an incentive for our early adopters, and we are pleased to be able to extend this incentive further.
At current projections, this means the Tier Bonus program will continue until the end of 2022, after which Tier Bonus payments on base assets will cease. Depending on market conditions, the value of YLD, and the total managed assets on the Yield App platform, this program could last longer or come to an end more quickly. We will keep all our customers regularly updated on the stats page of our website.
IMPORTANT: YLD on YLD staking and locking rewards will not be affected by this change. Those who lock up their YLD with us for 12 months before 1 March 2022 as part of our V2 promotion will still earn 20% p.a. on the locked amount, paid in YLD. After this, the rate will return to the standard 12% p.a., while customers staking their YLD will continue to earn up to 6% p.a.
These latest updates are part of our long-term plan to transition YLD from a rewards and membership token to become a full membership token. We firmly believe this will prove favorable for our customers and holders of our YLD token in the long term.
In response to questions we regularly receive about the remaining unminted supply of YLD, we have also decided to mint 100% of unminted YLD at our next minting event, expected this month. We believe this will provide our valued customers with greater visibility into all our activities and a better understanding of our ecosystem, ensuring that we maintain an industry-leading level of transparency.
While most digital asset service providers mint the entire token supply at launch, we originally chose a different approach. However, in practice, we realize this has created unnecessary confusion in our community, which we hope will be cleared up by this move.
As outlined in our founding tokenomics, only 300 million YLD can ever be created. Once the total supply of YLD has been minted, all undistributed YLD will remain locked in a wallet under our control and will continue to be distributed as per our emissions schedule, which will remain unchanged.
IMPORTANT: minting tokens is not the same as distributing tokens. With the exception of the 30 million YLD being added to the Tier Bonus rewards pool, our original distribution schedule remains unchanged.
Commitment to long-term success
We are extremely grateful for the incredible support our community has shown us since the launch of V2, with more than 68 million YLD now locked on our platform, while over 2,600 customers now call themselves Diamond Tier members. Overall, some 77% of circulating YLD supply is currently staked or locked on Yield App.
To demonstrate our gratitude for this display of confidence in our project, the vesting period for team tokens is being doubled from two years to four years. This move shows our unwavering long-term commitment to growing Yield App into the most trusted digital wealth platform in the world. We look forward to further growing and incentivizing the world-class team behind Yield App, which now counts more than 50 staff members, and growing.
Apart from our Tier Bonus program and paying our staff, our YLD token is also used to cover other costs associated with growing our business, including marketing expenses, expansion into new markets, additional exchange listings, and future initiatives.
In addition, a pool of tokens has been reserved for our hotly anticipated referral program, which is coming soon.
Despite the volatility we have experienced in traditional and digital assets alike, Yield App has been able to continue paying market-leading annual interest rates on all the assets available on our platform. We are firmly committed to maintaining a healthy, sustainable ecosystem in order to continue paying the high interest rates our customers have come to expect of us, while ensuring those with the greatest commitment to the Yield App ecosystem are rewarded accordingly.