- Yearn Finance contributor proposes a three-part governance overhaul to boost growth and revenue alignment.
- The plan calls for 90% of protocol revenue to go directly to YFI token holders who stake their tokens.
- The initiative removes the current vote escrow model, replacing it with a simpler staking system.
- The proposal also restructures the DAO for greater profit focus and increased reporting accountability.
- YFI token distribution and incentives for contributors are included as part of the changes, pending a community vote.
A contributor for Yearn Finance has introduced a proposal to make sweeping changes to the decentralised finance protocol. The move, presented by a member known as 0xPickles, aims to re-align protocol governance, increase revenue shared with stakeholders, and establish new contributor incentives.
The proposed overhaul would send 90% of all future revenue directly to users who lock up their YFI tokens. Last month, the protocol generated just under $200,000 in profit, according to DefiLlama data. The scheme must first win approval in an all-or-nothing vote by the protocol’s DAO (decentralised autonomous organisation).
In a statement, 0xPickles said, “This proposal creates a new deal. 90% of future revenue goes to stYFI holders, empowering them.” The proposal would eliminate the previous vote escrow system, replacing it with a straightforward staking model. YFI holders could lock up their tokens to earn a share of protocol earnings.
Additional measures include a plan to make Yearn’s DAO more profit-focused and require on-chain financial reporting for budget requests. “This demonstrates a fundamental lack of interest in the model,” 0xPickles stated, referencing the current model where only 3.8% of the YFI supply is locked.
Yearn was founded in 2020 and allows users to deposit cryptocurrencies like Ether for automatic yield earning. The protocol charges a fee for this service. Once among the largest DeFi platforms, Yearn Finance has seen a 92% decline from its peak, now holding $546 million in deposits. YFI’s token price is down 94% from its record high.
This is not the first attempt to restructure Yearn. In October 2023, a vote escrow token model was introduced but failed to gain traction. The current proposal also includes plans to distribute 1,700 YFI tokens as contributor incentives, cap performance bonuses, and create a long-term retention pool.
The full overhaul package is now up for discussion on the Yearn governance forum, where it will face a single community vote. More details on the proposal can be found in the documentation for staking model, DAO restructuring, and incentives.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Fed’s Waller: Stablecoins Should Coexist With Cash, Urges Regulation
- SWIFT Picks Linea Blockchain Over XRP Ledger for Payments Pilot
- AllUnity, Privy Partner to Embed EURAU Euro Stablecoin Wallets
- Microsoft Warns of AI-Driven Phishing Using Obfuscated SVG Files
- Top 3 US Stocks Delivering Over 1,000% Returns Since 2020
