‘Let’s Not Be Bitcoin’: Yearn Finance Considers Minting $200M in New YFI Tokens

Bitcoin may be the original cryptocurrency, but that doesn’t mean leading decentralized finance (DeFi) projects aren’t feeling self-confident enough to distinguish themselves from Satoshi’s vision.

“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,” a participant in Yearn’s governance forums, yfi_lit, wrote on Jan. 13.

Yfi_lit wrote this in defense of his now-modest proposal to mint a fresh new cache of 1,000 YFI tokens (currently priced at over $30,000), the same token that made the portal to DeFi, Yearn Finance, famous last summer, when 100% of its supply was given to Ethereum users with assets staked in key Yearn Finance vaults.

But the newest proposal has evolved. Now the Yearn community is gauging sentiment for increasing the supply by 22%, of a minting of 6,666 additional YFI (worth something like $200 million, at current prices), a third of which would go to core contributors and the rest would go to the treasury.

The proposal, authored by 11 different people, views “the fair launch as a living concept rather than a single event,” they write.

If sentiment looks good, it will be written up as code and voted on-chain using the governance app, Snapshot.

Not everyone is happy about the new developments, of course. Evoking themes like immutability and fixed monetary policy familiar to many longtime crypto enthusiasts, at least two YFI holders announced on the forum that they could no longer participate in a protocol that wasn’t honoring its understood social contract.

“I have observed the inability for the YFI project to detach itself from lord and saviour Andre [Cronje] and find its own path,” captainobvious wrote under yfi_lit’s post, announcing he’s leaving.

When another user chimed in with the same decision, yfi_lit replied, “Sorry for you to leave, but glad that people with that sort of attitude towards our builders are gone.”

Social contract

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