Yearn Doesn’t Want to be Bitcoin; Proposes Minting 6,666 New YFI Tokens
DeFi blue chip Yearn.Finance is not interested in being a Bitcoin. The project that gained much praise for its fair launch and a limited supply of 30,000 YFI, much lower than Bitcoin’s 21 million supply, is ready to mint some YFI. One enthusiast in the forum wrote,
“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.”
After the BABY (buyback and build) proposal passed with 99.44% support, the latest proposal aims to “safeguard Yearn’s future development” by minting 6,666 YFI, 22% of the current total supply.
One YFI is currently worth about $30,000, with a market cap of $925 million.
Though BABY is a “great first step,” it is “not enough on its own,” reads the proposal.
As such, the proposal mint some more YFI, and this 6,666 number is chosen because it provides the minimum viable amount to provide a competitive retention plan and is in line with Yearn’s peers — AAVE minted 23% during its migration from LEND.
The team plans to use 1/3 of the minted YFI to reward key contributors, while 2/3 of the tokens will be put in the Treasury. The proposal particularly notes other projects have poached the project contributors, and
“Yearn struggles to compete with the compensation packages offered in the current market.”
Last week, YFI creator Andre Cronje ranted that building is expensive and advised, “Don’t give away your tokens.”
According to the team, the latest plan will help with the future contributor incentives, liquidity mining programs, staking rewards, protocol mergers & talent acquisitions, and cross-protocol incentives to tighten co-operation across the ecosystem.
This will benefit the token holders by providing for Yearn’s future and creating a strategic reserve to advance Yearn as one of the world’s leading DeFi protocols, they wrote.
Currently, the proposal is seeing nearly 70% support out of 226 voters.