Yearn Finance structures iperations budget as YFI rallies. After a three-day voting cycle, Yearn Finance’s decentralised governance representatives accepted Yearn Improvement Proposal 54 (YIP-54), structuring an ongoing operating expenditure budget.
YIP-54 looks to improve on previous proposals, including YIP-36 and YIP-41, allowing for expenditures relating to hackathons, grants, security audits, bug bounties, and operations employee salaries. In addition to enabling community members to audit expenses quarterly, the YIP-54 also included a provision allowing the newly-formed Operations Fund to “buy back YFI or other assets at its discretion.”
Many Twitter users rejoiced at the news, interpreting it as a boon for the YFI token. Other recent proposals have also been focused on bolstering the Yearn ecosystem and incentivizing broader participation from community members. 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, meanwhile, 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. Since an early November low of $7,700, the YFI has rallied to a high of nearly $19,000, climbing over 200% as one of the top performers across the decentralized finance space. It currently trades at $18,266.
Likewise, the total value locked in Yearn’s yield-bearing vaults has begun to creep back up from an October low of $330 million to over $360 million today.