Yearn Finance’s decentralized governance approved Yearn Improvement Proposal 54 (YIP-54) has formalized an ongoing budget for operational expenses.
It has been reported that YIP-54 aims to improve on previous proposals, including YIP-36 and YIP-41, which allowed for expenditures relating to hackathons, grants, security audits, bug bounties, and operations employee salaries. Under YIP-54, community members will be able to audit expenses quarterly.
However, YIP-54 also included a provision allowing the newly-formed Operations Fund to “buy back YFI or other assets at its discretion.”
The once and future DeFi darling? As $yfi rallies, the latest moves from Yearn Finance's decentralized governance pave the way towards broader developer participation, sustainable budgets, and stronger incentives https://t.co/0LTTqSMg7B — Cointelegraph (@Cointelegraph) November 15, 2020
Many Twitter users rejoiced at the news, interpreting it as a boon for the YFI token.
.@iearnfinance proposal to buyback $YFI has 99% approval! In the past 4 months, Yearn vaults earned ~$3.4M in fees. Part of this may now be used to conduct actual buybacks (not just burning supply) to reward contributors 👀https://t.co/DbyLTRJADC — Jason Choi (@mrjasonchoi) November 15, 2020
The report said that other recent proposals have also been focused on bolstering the Yearn ecosystem and incentivizing broader participation from community members.
It has been analyzed that YIP-53 established the “yAcademy,” a security audit-focused program designed with the purpose of “attracting and retaining top talent,” and possibly establishing and profit-generating auditing service in the future.
YIP-52 significantly increased rewards for strategists, the smart contract engineers who develop yield-bearing strategies for Yearn vaults. The latest proposal’s success comes amid a strong run for Yearn’s YFI token, even by its own wildly volatile standards.
Likewise, since an early November low of $7,700, the YFI has rallied to a high of nearly $19,000 by climbing over 200% as one of the top performers across the decentralized finance space.
Thus, according to sentiment data provided by TheTie, social media sentiment for the asset has also been ticking upwards in recent weeks, even as total Tweet volume fluctuates, indicating that investors are increasingly bullish on YFI regardless of temporary hype.