Thread by @RyanWatkins_

Proposal to rethink @iearnfinance's capital allocation strategy.

Rather than distributing income to YFI stakers now, Yearn should use income to buy back YFI to reinvest in growth.

The goal is to maximize long-term value creation for YFI stakeholders.

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gov.yearn.finance/t/proposal-ret…

Yearn is DeFi’s leading yield aggregator and one of its most exciting community-run projects.

But it's still in its infancy with much work to be done.

This YIP could meaningfully improve the attractiveness of contributing to Yearn, by providing contributors with upside to YFI.

There are many community members that create enormous value for Yearn, yet did not participate in the initial YFI distribution or buy YFI early.

It would be beneficial to all stakeholders in the long-run if these contributors may also participate in the financial upside of YFI.

With a treasury that accumulates YFI, the community can provide YFI rewards to various value added contributors such as:

- Strategy Writers
- Protocol Politicians (Proposal Writers)
- Developers
- Content Creators
- Liquidity Providers

This is a very similar concept to providing startup employees stock options.

It will not only allow Yearn to attract more contributors, but also retain more contributors in the face of competition.

Yearn has the opportunity to be a leader in rethinking capital allocation in DeFi protocols.

I and the @MessariCrypto team look forward to hearing the community's input on this topic.

gov.yearn.finance/t/proposal-ret…