Yearn Finance passed a new token economic model proposal. In the future, YFI holders need to pledge tokens to participate in governance

Time:2022-01-03 Source: 832 views Trending Copy share

According to news on January 4, the income aggregator project Yearn Finance community passed the 65th proposal on the new token economic model with 99.68% of the voting results.

According to the proposal, a portion of YFI tokens will be repurchased by Yearn Finance's vault to reward YFI holders who actively participate in Yearn governance. At the same time, in order to strengthen the role of YFI tokens in governance, several changes are proposed:

1. YFI token holders obtain xYFI by staking YFI, and the pledger will get additional YFI token shares repurchased by Yearn Finance. When the price of YFI tokens rises, the pledger can earn more income.

This means that only YFI tokens will be eligible to participate in Yearn Finance governance in the future.

Second, users will be able to choose the lock-up duration of YFI tokens. The longer a person locks in, the more rewards they will receive.

This mechanism promotes the reduction of YFI's circulating supply. Users will also receive veYFI tokens for voting, which is proportional to the time they lock YFI. It is said that the proposal is inspired by Curve Finance and aims to limit the supply of liquidity by improving token economics and promote long-term price appreciation.

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