2021-1-15 04:16 |
The Yearn Protocol became popularized earlier this year and a core part the communities marketing at the time was focused on the aspect of a 30,000 max token supply. In fact, one of the earliest community governance proposals was centered around the burning of the YFI token minter to ensure that supply would remain hard-capped for the foreseeable future.
Now various community members and Yearn contributors have proposed that new YFI tokens should be minted in order to compensate contributors.
Proposal: yfi_lit suggests printing 1000 YFI for operations fund to give Yearn years of runway at a cost of 3% dilution. The opposition seems quite strong. Should we poll it?https://t.co/nyakRuRyv8
— banteg (@bantg) January 14, 2021
This new proposal looks to better align the incentives between contributing developers and the rest of the ecosystem minting 1000 new YFI tokens into the supply and awarding them to core contributors that were not lucky enough to have farmed YFI during it’s genesis launch.
It seems that the main motivation behind this new proposal is solving for the sustainability of Yearn’s ability to attract top-tier developer talent in the long term. By minting additional YFI tokens, the protocol can easily reward contributors by giving them more skin in the game and upside for their contributions. While this is not the only way to reward contributors, this proposal has attracted significant attention as it’s results may greatly affect the public’s perception of the YFI token.
Retail token holders, developers, and larger Venture Capital token holders have all chimed in on this new proposal on Twitter, each arguing their case for or against the minting of additional YFI tokens.
Opponents of the new proposal argue that the 30k cap on supply is part of an important scarcity narrative that the token needs to hold onto for maximum price appreciation.
They also cite the fact that the minting of new tokens shouldn’t even be in consideration as the community had previously approved a proposal that was meant to burn the YFI minter (pictured below).
On the other hand, some of the best known VCs in the space like Framework Ventures & Parafi Capital have openly announced support for this proposal as they agree that long-term sustainability is more important than retaining the limited supply narrative.
We support this as the largest YFI holder – we want to see a plan for allocation of YFI-denominated funds that makes sense, but pending that, we are in
30K memes are cool, having a sustainable project with low levels of inflation is cooler@polychaincap @paraficapital https://t.co/LPvVsnvtBC
To keep up with Yearn, follow them on Twitter.
The post Yearn Community Proposes Minting 1000 Tokens appeared first on DeFi Rate.
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