Home » YFI Rises as Budget Proposal Approved

YFI Rises as Budget Proposal Approved

by Carolina Lynch

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.


The information discussed by The Coin Magazine is not financial advice. This is for educational and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Do your due diligence and rating before making any investments and consult your financial advisor. The researched information presented we believe to be correct and accurate however there is no guarantee or warranty as to the accuracy, timeliness, completeness. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright The Coin Magazine All rights reserved.

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