Yearn Finance is up amid a Santa slowdown thanks to a community proposal. But is the community proposal veering dangerously into Safemoon territory?  Something, something yearn finance — Brex?its (@BrexBits) December 20, 2021 DeFi play Yearn Finance is defying present market conditions. The protocol is up 16% in the last 24 hours, and 90% in […] The post Yearn Finance Pops Thanks To Community Proposal To Change Tokenomics appeared first on CryptosRus.

Yearn Finance Pops Thanks To Community Proposal To Change Tokenomics

Yearn Finance is up amid a Santa slowdown thanks to a community proposal. But is the community proposal veering dangerously into Safemoon territory? 

DeFi play Yearn Finance is defying present market conditions. The protocol is up 16% in the last 24 hours, and 90% in the last 7 days. It’s currently trading in the $37,900 USD range. Meanwhile, the global market cap is down 1%, bringing the total to 1.2 trillion USD.

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  • The recent pump comes days after Yearn announced a 7.5 million buyback of its token. The buyback was only 0.27% of its supply. Yearn’s total supply is 36,666.
  • Another catalyst for Yearn’s current ascent is a recent community proposal to change Yearn’s tokenomics.
  • The crux of the proposed changes revolves around rewarding “strong hands,” and levying fees on “weak hands.” They would do this in the form of a new token and an aggressive buyback of the YFI token with earnings from the YFI treasury.
  • To learn more, check out this Twitter thread.
  • The proposal has yet to be approved but it’s already influencing the price. The idea being that a deflationary token like YFI will benefit greatly from a concerted buyback program.
  • The community proposal sounds quite similar to the model of other less reputable “deflationary” tokens like Safemoon, where strong hands are rewarded by holding a token they could likely make more money selling.
  • Yearn Finance’s DeFi compatriots have struggled of late. Compound, for example, was trading as high as $850 USD in May. COMP currently is trading in the $190 range. Maker isn’t struggling as much as Compound, but it’s also down more than 50% since its all-time high of $6,300 back in May. It’s current price is $2,350 USD.

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