YFI proposes to issue 6666 more Tokens, triggering discussions on the sustainable development of Decentralized Finance.

The Yearn.finance (YFI) community recently proposed a plan to increase the issuance of YFI tokens, which has sparked widespread discussion in the industry. The proposal suggests issuing an additional 6666 YFI, with one-third allocated to incentivize core contributors, while the remaining portion will be added to the treasury to support future development.

Since its inception, the YFI protocol has demonstrated strong characteristics of decentralized governance, and its fair token distribution mechanism has been highly praised in the DeFi space. However, this seemingly ideal economic model has also laid hidden dangers for the current predicament.

Currently, the circulating supply of YFI is 30,000 coins. If this proposal for an increase in supply is approved, the total supply will increase by approximately 22%. Based on the current market price, the value of the newly issued portion is estimated to be around 200 million USD. Proponents of the proposal believe that, compared to other mainstream DeFi projects, YFI is at a disadvantage in terms of talent incentives, leading to the loss of some developers.

The YFI protocol completed the distribution of all tokens in just two weeks. This rapid allocation model, while attracting a group of influential talents to join the community, also buried hidden dangers for future development. For distributed systems, a continuous incentive mechanism is crucial for maintaining network consensus and promoting long-term development.

Setting a fixed token limit or completing all distributions in a short time may benefit early participants in the short term, but it is difficult to support the long-term development of the network. The current state of the YFI community confirms this. Without a continuous influx of fresh blood and value creation, the protocol may stagnate, which in turn affects the token price, leading to talent loss and creating a vicious cycle.

YFI, as a star project in the DeFi field, once attracted a large amount of value in a short period of time. However, what is truly valuable are the talents within the community, not the protocol itself. Every breakthrough in the blockchain industry comes from the introduction of new information; only by continuously bringing innovation can value be sustainably created on the chain.

The consensus building cycle of the YFI protocol is too short, leading to the loss of core talent, which has resulted in the protocol losing its competitiveness and innovation capability. The discussions triggered by this issuance proposal are worthy of deep reflection by the entire industry: what kind of economic model should a truly sustainable distributed system adopt?