DeFi project yEarn.Finance to issue YFI tokens worth $218 million

The yEarn.Finance DeFi project community, by a large majority (83.46%), approved the proposal to increase YFI issuance by 6666 tokens (approximately $218 million).

YIP-57: Funding Yearn’s Future has passed with 83.46% of the eligible vote in favor. This YIP is now official and binding. More details will be shared in the future.

A complete description of this YIP can be found below. https://t.co/umzNPL1GnX

— yearn.finance (@iearnfinance) February 2, 2021

The funds will be used to reward core developers and to create a reserve fund, to be distributed under community oversight.

Proponents say that, thanks to YIP-57, protocol users will be able to align their interests with major token holders and directly influence the development of the DeFi project.

The poll with 1,670 votes for and 331 against closed on February 2 at 18:00 UTC. The final changes are approved by the holders of six of Yearn’s nine multisigs, acting together as a de facto board of directors.

One third of the 6666 YFI ($67 million) is earmarked for rewarding early investors and developers. The funds will be distributed according to a vesting schedule.

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

The current circulating supply is capped at 30,000 tokens. Over the last twenty-four hours, YFI price rose 2.9%, according to CoinGecko. The project ranks 14th among DeFi tokens and 12th by the volume of locked assets ($525.1 million), according to DeFi Pulse.

In December 2020, yEarn.Finance announced the acquisition of the DeFi exchange SushiSwap. Earlier there was integration of yEarn.Finance with the lending protocol Cream, the project Pickle Finance and the Argent wallet, the Akropolis project and the peer-to-peer insurance market Cover Protocol.

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