After a three-day voting period, This morning members of the decentralized administration of Yearn Finance approved Yearn Improvement Proposition 54 (YIP-54) to formalize an ongoing budget for operating expenses.
YIP-54 targets on previous proposals, including YIP-36 and YIP-41, which allowed for hackathon-related costs, grants, safety audits, bug bounties, and operations to improve employee salaries. Under YIP-54, community members will be able to review expenses for quarterly.
YIP-54 also contained a provision that allows the newly formed working capital funds to “buy back YFI or other assets at their own discretion”. Many Twitter users were delighted to hear that token it as a boon to the YFI interpretation:
Over the past 4 months, Yearn Vaults have earned ~ $ 3.4M in fees.
Part of it now being used can lead to actual buybacks (not just burning supplies) to reward contributors https://t.co/DbyLTRJADC
– Jason Choi (@mrjasonchoi) November 15, 2020
Other new proposals were also focused on strengthening the Yearn ecosystem and incentivizing wider participation from members of the community.
YIP-53 established the “yAcademy” with the aim of a program focused on safety audits designed by “attracting and retaining the best talent” and possibly establishing an audit service that will generate profits in the future.
Smart contract engineers develop income strategies for Yearn vaults: YIP-52, meanwhile, significantly increases the rewards for strategists.
The success of the recent proposal comes amid a strong rally in Yearn of the YFI token, Even by its own wildly volatile standards.
From an early November low of $ 7,700 that YFI has rebounded to nearly $ 19,000, rising over 200% as one of the best in the decentralized finance space.. It is currently trading at $ 18,266.
Similarly, the total value locked in Yearn Income Vaults has started rising from an October low of $ 330 million to more than $ 360 million today.
According to sentiment data provided by TheTie, Social media sentiment for the asset has also risen in the past few weeks, as the overall volume of tweets fluctuates, suggesting that investors are increasingly bullish about YFI regardless of the passing hype.
However, these metrics are unlikely to be of interest to the YFI team. When contacted for comment, Yearn team declined. Said a senior developer in October:
Ladies and gentlemen, pls do not include charts in my feed.
Blips are limited in time, code is eternal.
Keep on building.
– banteg (@bantg) October 7, 2020