Yearn Finance Shuns Hard Caps, Looks to Mint More YFI Coin

  • A new proposal on the Yearn Finance forum leads to a possibility of minting more YFI tokens.
  • The proposal recommends a total of 6,666 tokens valued at about $200 million.
  • So far the proposal has led to two YFI holders exiting the platform.

Yearn Finance saw an interesting discussion on one of its governance forums on Jan 13th. One of the comments on the page led to Yearn Finance toying with the idea of minting $200 million worth of new YFI tokens.

The comment that invoked such a powerful idea, came from a user named yfi_lit. It said, “Let’s not be Bitcoin. This idea of hard caps for start-ups is very romantic but not necessarily the best execution path for maximal value.”

This statement came about from yfi_lit defending their initial proposal of minting a new cluster of 1,000 YFI tokens. At the time, the tokens stood at $30,000 in value.

The new proposal calls for an increase in the new mints. It raised the bar from 1,000 to 6,666 tokens. Thus, bringing the total value to about $200 million.

The plan for these tokens is simple. A third held by core contributors and the rest in the treasury. Eleven unique authors penned the new proposal. A final vote will determine the need for a new code.

However, not all members are happy with this notion. At least two YFI holders have openly proclaimed their disdain for the new proposal. One user — captainobvious, even went as far as bashing the creator of the project — Andre Cronje, before their exit from the forum.

While this decision may seem rash, it is not completely unwarranted. In September 2020, Cronje shared a proposal stating that Yearn Finance will never mint more YFI tokens. This proposal even passed the initial round of votes.

But, no actions were made after, meaning no new code was written. This is a great cause of friction within the community. The argument is that since a follow-up vote was not taken, this decision was never made official.

Colette Larsen

An eager wordsmith who conveys her thoughts and fascinations through words and storytelling. Besides lurking on new and emerging technology forums, she’s always updated when it comes to blockchain.

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