DeFi project yEarn.Finance proposes to issue extra YFI worth $200 million

Eleven key participants in the DeFi project yEarn.Finance proposed increasing YFI issuance by 6666 tokens (~$200 million). The funds will be used to reward core developers and to create a reserve fund with subsequent distribution under community oversight.

Yearn contributor token allocation discussions are on-going on our governance forum. @dudesahn has compiled data of team token allocations for other protocols in DeFi.

We encourage you to join the discussion and participate in governance.https://t.co/GT4dp3Slen

— yearn.finance (@iearnfinance) January 20, 2021

One third of the 6666 YFI ($67 million) is earmarked for rewarding early investors and developers. The funds will be distributed according to the [simple_tooltip content=’Вестинг — поэтапная разблокировка токенов в соответствии с определенным графиком’]вестинга[/simple_tooltip] schedule.

Two thirds — 4444 YFI ($134 million) — will be allocated to create a reserve fund under the control of the yEarn.Finance operating fund.

The funds from the reserve fund are intended to finance the following areas:

• creating incentives for developers;
• liquidity mining programs;
• staking rewards;
• attracting specialists and acquisitions of external protocols;
• cross-protocol incentives to strengthen collaboration within the ecosystem of projects.

The authors of the proposal argue that yEarn.Finance, by implementing the proposal, will be able to retain existing developers, attract new ones, and maintain a competitive position in the sector. Protocol users will be able to align their interests with major token holders and directly influence the project’s development, according to the authors.

At the time of writing, 252 members of the yEarn.Finance community had voted. 69% (176) of users supported the issuance of tokens and their allocation between developers and the reserve fund.

Data: Yearn.Finance.

As a reminder, in December 2020 yEarn.Finance announced the acquisition of the DeFi exchange SushiSwap. Previously, yEarn.Finance integrated with the lending protocol Cream, the project Pickle Finance and the Argent wallet, the Akropolis project and the cross-protocol insurance market Cover Protocol.

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