Yam Protocol, a decentralized finance (DeFi) tool for “yield farming”, has finished its migration towards its second iteration after suffering a 99.99% collapse. In a recent Medium blog post, Yam Protocol announced that the migration from its first iteration YAMv1 to its second iteration YAMv2 has successfully completed, resulting in a final V2 supply of 3.726 million coins.
The protocol noted that the purpose of the V2 migration is to allow for a stasis period in which key governance decision can be made while the full Yam Protocol is audited. To facilitate this governance process, starting August 24, the governance forum for off-chain voting with users’ signatures will be launched. The team explained that this voting system will work similarly to Balancer Protocol’s current governance process.
Community members will be able to submit proposals for voting when the portal is opened tomorrow. The Yam team expects the community to provide the type of proposals that could have a material impact on the timeline to V3 launch. The requirement to submit a proposal will be lowered due to the lack of delegation in V2, per the announcement. However, the quorum for approving the proposal will still be as it was in V1 – 4% of network participants must be attained to implement the proposal.
The Yam protocol rapidly attracted the attention of many crypto enthusiasts after its launch on August 11, 2020. YAM’s price reached an all-time high of over $160 soon after the protocol’s launch. However, in less than 24 hours, a critical design flaw was disclosed in the protocol funding mechanism which resulted in 99.99% collapse of the YAM price.
Though the team attempted to repair the bug, it wasn’t successful as security expects announced that the protocol would never act as intended. Nonetheless, the team had no plans to give up, and so initiated a protocol audit process to guarantee seamless migration to new versions of Yam.