to buyback YFI from open market as YIP-54 passes

Published on by Cryptoslate | Published on

Finance, the decentralized credit lending, loans, swaps, and yield aggregation protocol, saw its latest proposal - the YIP-54 - passed by its community members on Sunday that allows the protocol to buyback YFI from the open market as part of its plan to "Formalize Operations Funding."

99.85% of all voters staked a total of 935.4 YFI, $18 million at current prices, to vote "Yes" for the operations fund to be established.

Only 0.15%, a tiny 1.38 YFI, were on the "No" side.

"As the Treasury does not earn YFI, nor is it able to mint YFI, the straightforward way to acquire YFI is to buy back YFI with part of the Operations Fund," the YIP's authors wrote in the proposal.

"The proposal is to round this number down to an even 50% and divide the Treasury funds equally between YFI staking rewards and Operations."

To ensure the funds are trackable and all contributors under scrutiny for the work they do and the rewards they receive, Yearn will maintain a quarterly fund audit to prevent any free riders.

The YIP authors stated that while the proposal would benefit from increasing buy demand for YFI, "The purpose would not be to manipulate YFI price or to engineer long-term YFI price appreciation."

"Rather, the purpose would be to add YFI to the Operations Fund in order to reward contributors through YFI grants."

The proposal has also granted the team to "Buy back other assets than YFI" as and when the operations increase and newer products are launched.

"The Operations Fund therefore should have the right to buy any asset as required," the YIP stated.