Yearn Finance Creator Andre Cronje Wants to Cap Supply at 30,000 YFI
Andre Cronje, the creator of yield farm aggregator Yearn Finance, proposed a measure over the weekend that seeks to cap the total supply of YFI tokens at its current 30,000.
No more YFI Minting
Yearn Finance, the yield aggregator platform which has turned heads since its YFI token in late-June could soon have its token supply capped permanently at 30,000 if a proposal by its creator, Andre Cronje, goes through.
For the uninitiated, yearn.finance (YFI) is a decentralized finance (DeFi) platform which aims to perform a host of functions such as aggregated liquidity and automated marketing making by moving providers’ funds between platforms such as dYdX, Aave, and Compound.
YFI is the native token in the Yearn Finance platform. Users can earn it by contributing liquidity to yearn.finance’s liquidity pool and use the token for platform governance.
In an online poll held over the weekend, Cronje asked the community, “Burn the timelock on the YFI token so that no minting can ever take place again.” It meant limiting the total amount of YFI tokens ever in circulation, a point that was debated among the YFI community in the past few months.
“On-chain governance will soon be finalized and deployed. This will be ready within the next ~2 weeks, pending on audits. As the first official on-chain enforced governance vote I want to propose burning the minting capability permanently, thus permanently capping YFI.”
With the removal of the minting function, no member of the YFI community, or any of the project’s 9 multisig holders can print more tokens ever. How would this help? Any potential inflation arising due to increased token supply is curbed while preventing people from manipulating Yearn’s internal governance system.
At press time, the Yearn community is highly in favor of Cronje’s proposal – that of destroying the contract that allows the minting of new tokens. As per the poll, over 99.97% have voted in favor of Cronje’s proposal staking over 333.11 YFI to do so. The total value of that is $1.5 million as per price data from Coingecko.
Comments on the proposal showed people voting with Cronje in creating a scarce supply. One said: “Scarcity is a massive strength and something that separates YFI from other projects with ongoing minting schedules.”