Yearn Finance voters have given their nod of approval for the buyback of the governance token.
The new proposal also brings in a new advancement and progress in its reward structure.
YIP-54 proposal gets a green signal
Yearn Finance on November 16 announced that its new proposal YIP-54 has been voted and approved by 99.85%. The proposal maintains its earlier 6-month budget on a continuous basis and has been established to formalize operations funding. The newly approved proposal allows the fund to conduct buy-backs of the governance token as a reward to the contributors.
At present in the Yearn Finance system, only those who add liquidity to the system are given a stake in the operation. But the company realized that the investment strategists require more than just compensation considering the amount of effort they put in. Hence the new move allows the project and endows it the right to make YFI grants over and above the liquidity provider and broadens the scope for contributor profile.
How did voting take place?
For the voting rights, YFI ownership was a must and those who had to YFI had no say in the entire matter. YFI is actively traded on Uniswap and Binance and if people wanted to vote they could have their share of the governance tokens to participate in the voting process. The voting was structured as one vote per YFI and per unit, YFI was limited to 30,000 units.
Source: DeFi Pulse
Not just the funding, the new proposal also provides the new ability to make purchases of other project assets and YFI. YIP-54 also includes the right to make continuous changes. As per the proposal:
“Together with the previously approved YIP-51 and YIP-52, this is the final piece in a trilogy of YIPs seeking to upgrade Yearn operations and financials.”
The times are tough and this new proposal combining buyback and compensation is an effort towards a new rebound especially when in the month of October a hacker whisked off $15 million within hours of Andre Cronje announcing a new project. Although the hacker did return $8 million back there have been many lawsuits lurking in the air to claim the remaining funds. As a result, the TVL has risen from $332 million on October 28th to the present figure of $366.5 million which is still very low compared to $967.4 million as of August 28th.
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