Produced | NEST Fans (nestfans.com)Produced | NEST Fans (nestfans.com)On January 21st, members of the Yearn.finance (YFI) community initiated a proposal on increasing the number of YFI issued. The proposal asserts that,It is proposed to issue 6,666 YFI, 1/3 of which will be used to reward major contributors, and the other 2/3 will be included in the treasury for future expenditure and development.Yearn Finance has demonstrated a strongDAO Governance Colors, The fair and just DAO has brought together countless insightful governance proposals, more because the distribution mechanism of the YFI protocol is relatively the fairest in the DeFi field.At present, the total issuance of YFI is 30,000 pieces, all of which have entered circulation. According to the additional issuance proposal, 6,666 YFIs are about 22% of the current total issuance, and calculated at a price of 30,000 U.S. dollars, it is about 200 million U.S. dollars.The initiator of the proposal believes that mainstream protocols such as Uniswap, Aave, and Synthetix maintain good development competitiveness by allocating 20% to 30% of the tokens to the development team as incentives, while YFI is at a “competitive disadvantage” in terms of talent.Due to lack of money, some developers were lost to other projects.We all know that the YFI protocol completed the distribution of all tokens within 2 weeks. Although the time is short, it has also attracted many influential talents to join the YFI community. Here we need to know that the release cycle of the economic model of the YFI protocol is only a short period of 2 weeks.It is this seemingly beautiful economic model that has planted the seeds for the proposal of the YFI community to issue additional tokens.As a distributed system, there are profound reasons for setting the total amount of tokens in the economic model to be very high or unlimited, and the release period is very long.Because to promote the continuous expansion of the consensus of the entire distributed network, there needs to be continuous incentives.Fixing the upper limit of tokens, or completing token distribution in a short period of time, can only be said to be temporarily beneficial to those who have joined the consensus (market price performance is good), but it cannot maintain the long-term development of the network itself, unless the consensus (developers) never Without loss, it is obviously impossible.The current situation of the YFI community has confirmed this. For a distributed system, if there are no persistent consensus participants to join in, provide new information, and create value, then the protocol itself will stagnate. Especially in the blockchain industry, liquidity funds and resources are scarce, and the competition is extremely cruel. If you are not careful, it will become Old DeFi. The so-called not to advance is to retreat, the system stagnates and the development of the token is almost inevitable. The price drop will further lead to the loss of those who have agreed, and then enter a vicious circle...Looking back at this wave of DeFi boom, the YFI protocol is actually one of the star projects, which has captured the most value on the chain in a short period of time. The reason is simple. A group of smart people brought valuable information to this agreement. The agreement itself is not worth much at all. What is valuable is these smart brains in the community.We will find that every breakthrough in the blockchain industry is because the latter brings new information to the blockchain world, which in turn brings more possibilities.Of course, if new information is only provided briefly, the ending can be imagined. Only by continuously bringing new information to the blockchain world can we continuously capture and create value on the chain.The consensus construction cycle of the YFI protocol is too short, so when the smart people among the consensus members leave, the protocol itself loses its competitiveness and the ability to create value.Regarding the additional issuance proposal of the YFI community, it is worth thinking about by the entire industry:What should the economic model of a truly distributed system look like?
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