Yearn Finance (YFI) announced on November 16 that its proposal to formalize operations funding had been approved by 99.85% of those voting.

The proposal [YIP-54] maintains its previous six-month budget on an on-going basis. Quarterly reports were also established.

Most importantly, though, YIP-54 permits the fund to conduct buy-backs of its YFI governance token. In its justification for the move, the proposal’s authors explain that the motivation for the buy-back is to grant YFI as rewards to contributors.

Currently, only those adding liquidity to the system are given a stake in the operation of Yearn Finance for doing so. Investment strategists, the company realized, need more compensation, given the work that they do.

The current move gives the project the right to make YFI grants beyond the liquidity contributor profile and potentially broaden contributor interaction.

The authors note that the move could increase demand for YFI on exchanges, but they maintain that they have a more technical reason. Before the proposal was accepted, the Yearn treasury did not have the capacity to mint or acquire YFI.

As YFI ownership was required for voting rights, system contributors without the governance token had no say. YFI is available on Binance and Uniswap, which means that people could buy their way in with voting in mind. Yearn voting is structured at one vote per YFI, and YFI is limited to 30,000 units.

The passage of YIP-54 also gives the ability to make purchases of other project assets and YFI. The authors state that they see future products within the platform that could also be useful to buy.

The evolution of Yield Finance is set at the moment, and though YIP-54 includes the right to continue making changes, attention will likely be drawn elsewhere. According to the proposal:

“Together with the previously approved YIP-51 and YIP-52, this is the final piece in a trilogy of YIPs seeking to upgrade Yearn operations and financials.”

The buyback and compensation realignment comes as part of an attempted rebound after a difficult month of October. A hacker made off with $15 million within hours of Yearn founder Andre Cronje announcing a new project.

The hacker returned $8 million, but lawsuit funding campaigns have since been launched to claw back the remaining funds.

As a result of the turnaround, Yearn Finance has seen its total value locked (TVL) rise from a low of $331 million on October 28 to a current $366.5 million, compared to over $967.4 million on August 28.

However, prices for YFI have jumped from a low of $7,451 on November 5 to $18,099 as of the time of writing, albeit down from an all-time high of $43,966 on September 12.

The post YFI Rises as Contributors Approve Yearn Finance Budget Proposal appeared first on BeInCrypto.

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