Yearn.finance (YFI) governance community introduced a new proposal on Jan. 21 to fund the Yearn’s future operations, as seen in the governance forum. The proposal calls for the minting of 6,666 YFI tokens, worth approximately $206 million.
- The proposal will see the community on “safeguarding Yearn’s future development”, asking them to approve the minting of 6,666 YFI, 22% of the 30,000 total supply
- If approved, a third of the minted tokens will go to key contributors and the remaining to the community-controlled treasury
- Examples for use of the funding include contributor incentives, liquidity mining programs, staking rewards, protocol mergers and talent acquisition and cross-protocol incentives to tighten co-operation among projects
- Yearn is cooperating with several projects, including SushiSwap and Cover Protocol
- This is expected to retain and incentive contributors, and foster faster growth; the proposal’s authors, which includes YFI’s biggest contributors, state that Yearn’s launch did not adequately plan for the retention and incentivization of contributors
- The proposal compares the allocation of funds to top-tier talent, which is lower than that what YFI contributors receive
- The current informal vote has recorded 215 votes, with roughly 75% voting in favor