Yearn Finance YFI's Token Jumps After Tokenomics Proposal
Rancakmedia.com – Yearn Finance's YFI Yearn token is up about 25 percent over the previous 24 hours despite the larger general market downturn. Yearn's YFI token is up about 25 percent on the day and more than 100 percent on the week.
The price increase is likely related to the new Yearn Governance proposal which will require a lot of adjustments to Yearn's tokenomics.
Proposal Not approved
Yearn.Finance token holders have enjoyed substantial price growth this week, with YFI tokens up around 25 percent today alone.
Yearn Finance YFI Token Soars
Yearn.Finance (YFI), a DeFi aggregator with a total value of over $5.5 billion, is up at a time when most other tokens and coins on the market crypto down. In addition to today's 25 percent price increase, YFI is up about 100 percent over the previous week.
In May, YFI reached a value of nearly $82,700 per token, but was trading as low as $19,594 as recently as December 12. At the time of writing, the value is almost $39.100 per token.
Price activity may stem from proposals circulating among the Yearn community discussing revisions to YFI's tokenomic fundamentals. For now, the proposal is still in the necessary discussion stages and does not yet meet the requirements for formal approval.
This proposal focuses on four important actions, which must be completed sequentially, to change the tokenomics of the YFI token:
First, a portion of YFI tokens will be bought back by Yearn's Treasury and provided as an incentive to YFI holders who are actively involved in Yearn's Governance.
Second, four mechanisms by which YFI holders can be compensated for locking up their tokens are presented.