Yearn. Finance’s community members and team members have proposed to increase the supply of the YFI tokens, which is around $225 million as per the current valuation.
6666 YFI tokens to be minted to incentivize developers.
Yearn. Finance To Mint New YFI Tokens
There has been a continuous discussion and debate regarding the same as the team strives to incentivize the developers of the project better. Yearns’s governance forum participant yfi_lit tweeted defending the idea. “Let’s not be Bitcoin. This idea of hard caps for start-ups is very romantic but not necessarily the best execution path for maximal value,”
A team of 11 authors, including the core contributors and essential community members, has finally recommended increasing the supply by 6666 UFI tokens to improve the yield vault project’s developer incentives. Yearn Finance has a treasury of around $5000000 in which it did not reserve any percentage of the token supply to incentivize the team during the Fair Launch event. The fair launch of the liquidity mining event of the token was successful in garnering a large community; however, it impacted the performance of the project due to a lack of resources. The Yearn team now wants to compensate for the lags during the fair launch event and thus rolling out “Funding Yearn’s Future,” through which it wants to Mint 6666 tokens and increase the supply by 22 percent.
As per the proposal, out of the all minted ones, around 4444( $150 Million) worth tokens would be used to set up a treasury, and the remaining 2222 tokens would be used to incentivize the early and current Yearn contributors. The team will also set up a “compensation working group’ to oversee the 2222 token distribution to contributors. The Compensation Working Group will control and manage the disbursement of compensation tokens considering the overall good of the YFI market through a vesting schedule.
As per Coin telegraph, a core contributor of the Funding Yearn’s Future, Tracheopteryx said, “Lots of ideas being discussed, the goal is to protect YFI holders from dumping via vesting while also finding something that works for the pace of DeFi.
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