Yearn Finance Voted To Inflate The Token Supply By 20%

Yearn Finance voted to inflate the token’s supply by 20% or to mint an additional 6,666 YFI in order to find the future development of the protocol so let’s read more in our latest altcoin news.

The Yearn Finance community discussed expanding the YFI supply as a way to compensate the decentralized platform’s staffers and the vote went live on the Snapshot web app on January 28^th, officially ended today. YFI is a collectively designed advisor for yield that became a portal for all things DeFi. It has its own token YFI which is worth about $30,000 as of the time of writing. There’s a total of 30,000 YFI in existence according to the original “fair launch” and if the new tokens are minted now and have no impact on the market cap, one could expect the value of the coin to drop to $25,000 but things cannot be as easily predicted.

Yearn Finance voted to increase the supply and the vote ended 1670 versus 331 against. To participate in the vote, the holders had to stake their governance contract in advance of the vote by a specific ETH block number. The total amount of YFI staked to vote on YIP-57 was 4089. The final changes are approved by the members of the YFI multi-sig. Under the new proposal, 33% of the new tokens would be set aside for key contributors, and which of them would be for the contributors is not decided yet. The other 66% was set aside as treasury for everything until further development. The authors of the proposal wrote:

“Yearn’s launch was exceptional at creating a decentralized and engaged community, but it did not provide adequate incentives to retain existing and future contributors on an ongoing basis, nor did it provide the protocol with a war chest to fund future activities.”

The community remained divided on this initiative but it seems that most holders are for it. As one member of the support team noted:

“This seems to be the equivalent of an equity raising round. In these rounds an early-stage venture will issue equity and in effect dilute current shareholders. … The overarching idea being that the cash raised will increase future value enough to offset any dilution.”