A new proposal is published on Yearn.Finance forum with a focus on buying back YFI tokens. It proposes a new solution to use staking rewards for buying back YFI tokens. Yearn community members should vote for/against the new proposal in the forum. If the proposal finds the needed vote, it will significantly change the specs and use cases of the YFI token.
Proposing a New Use-Case for YFI Token
Proposals are vital specs of DeFi communities. They help the project improve based on feedback from users and developers. If a new proposal finds enough votes in a forum, it may significantly change the network. Some of the suggestions are focused on financial incentives in a DeFi platform. They try to engage more regular users to join the platform and use their tokens. The new proposal on Yearn Finance is somehow focused on this. It tries to show a new use-case for YFI tokens that results in more circulation and buying of the token.
The new proposal’s first focus area on the Yearn forum is replacing YFI staking rewards with YFI buybacks. As a result, users can use their YFI staking rewards to buy back YFI in the open markets. They can even use the bought back YFI to contribute to the community. As a whole, contributing to the community will be easier for every user.
The proposer believes that the new use-case for the YFI tokens surely helo the community and Yearn Finance as a whole. It will simplify the treasury design. Besides, the YFI mechanism and capabilities will be much more comfortable with the new proposal. One of the benefits of the new proposal for Yearn is making governance easier for every user.
The new proposal on Yearn is named YIP-54. The proposal post describes multiple aspects of it. Motivations, rationale, previous proposals, and future possibilities are some of them.
If the proposal receives enough votes, the accepted YFI for governance voting will be widened. According to the proposal:
“This functionality is already supported and excludes protocols such as Aave, which could be utilized in governance attacks. The list of supported protocols is configurable and is being reviewed continuously; improvements and suggestions can be submitted to the repo.”
The new proposal on Yearn focuses on one of the crucial aspects of the DeFi community. Governance tokens are vital in these communities. The more use-case for them and better functionality, the more users will be attracted to have an active role in the community.
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