The Yearn.Finance community has discussed a recent funding proposal regarding the minting of YFI tokens. The argument presents a tradeoff between the protocol’s original vision and its future development.
Yearn.finance is a suite of DeFi products that provides lending aggregation, yield generation, and insurance on the Ethereum blockchain. The protocol has a governance token, YFI, and has generally shared a similar supply philosophy as Bitcoin by fixing the total supply at 30,000 tokens, with no pre-mine, team allocation or founder rewards. This scarcity of YFI led to a massive return of 35,000% in the first week of its listing on Uniswap.
In September 2020, Yearn.finance founder Andre Cronje proposed the prevention of future issuance of YFI by setting a hard-cap of 30,000 tokens. However, the proposal was not activated. There was no binding vote to burn the YFI minting keys. As a result, there is currently no hard-cap on the total supply of YFI tokens. The proposal has been brought up once again recently when the community started debating on the future development of the protocol.
While the Yearn community agreed with the latest funding proposal in principle, they held different views on the YFI minting amount and the proportion of YFI allocated to the core developer team. At the time of writing, the proposal has gained 70% approval and a formal vote is expected to be conducted via the governance tool.
Yearn core team members have also expressed excitement with the community engagement over the recent proposals and discussions.
was originally published in OKEx Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.
