After a three-day voting period, this morning members of Yearn Finance’s decentralized governance approved Yearn Improvement Proposal 54 (YIP-54), formalizing an ongoing budget for operational expenses.
YIP-54 aims to improve on previous proposals, including YIP-36 and YIP-41, which allowed for expenditures relating to hackathons, grants, security audits, bug bounties, and operations employee salaries. Under YIP-54, community members will be able to audit expenses quarterly.
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:
In the past 4 months, Yearn vaults earned ~$3.4M in fees.
Part of this may now be used to conduct actual buybacks (not just burning supply) to reward contributors https://t.co/DbyLTRJADC
— Jason Choi (@mrjasonchoi) November 15, 2020
Other recent proposals have also been focused on bolstering the Yearn ecosystem and incentivizing broader