After a three-day voting period, the members of Yearn Finance’s decentralized governance approved the Yearn Improvement Proposal 54 (YIP-54) this morning and formulated an ongoing budget for operating costs.
YIP-54 aims to improve on previous proposals, including YIP-36 and YIP-41, which enabled spending on hackathons, grants, security reviews, bug bounties, and operational employee salaries. As part of YIP-54, community members can review spending on a quarterly basis.
YIP-54 also included a provision allowing the newly established Operations Fund to “repurchase YFI or other assets at its own discretion.” Many Twitter users were happy about the news and interpreted it as a blessing for the YFI token:
. @ iearnfinance proposal to buy back $ YFI has 99% approval!
Over the past 4 months, Yearn safes have earned ~ $ 3.4M in fees.
Some of that can now be used to conduct actual buybacks (not just burning supplies) to reward contributors. Https://t.co/DbyLTRJADC
– Jason Choi (@mrjasonchoi) November 15, 2020
Other recent proposals have also focused on strengthening the Yearn ecosystem and encouraging wider participation by community members.
YIP-53 founded the “yAcademy,” a security clearance-focused program that aims to “attract and retain top talent” and potentially establish and generate an exam service in the future.
YIP-52 dramatically increased the rewards for Strategists – the smart contract engineers who create profit-driven strategies for Yearn safes.
The success of the latest proposal stems from a sharp surge in Yearn’s YFI token – even by its own extremely volatile standards.
Since a low of $ 7,700 in early November, the YFI has rebounded to a high of nearly $ 19,000 and is one of the top performers in the decentralized finance space, up over 200%. It is currently trading at $ 18,266.
Likewise, the total value of Yearn’s revenue-bearing vaults has increased from an October low of $ 330 million to over $ 360 million today.
According to sentiment data provided by TheTie, social media sentiment for the asset has also risen in recent weeks, although overall tweet volume has fluctuated, suggesting that regardless of the passing hype, investors are increasingly bullish on YFI.
However, these metrics are unlikely to interest the YFI team. When the Yearn team reached out for comment, it declined. A senior developer said in October:
Sirs, no charts in my feed please.
Blips are temporary, code is eternal.
– Banteg (@bantg) October 7, 2020