Yearn Finance is undergoing a major reform. The governance proposal YIP-XX aims to directly distribute 90% of the protocol's revenue to the holders of locked-up YFI – this is a compensation for long-term holders, after all, YFI has fallen from a 7B giant in 2021 to a current TVL decline of 90%.

Key changes: Abandon the previous "voting custody" model (only 3.8% of YFI is locked and still decreasing) and switch to a simple staking system. In addition, the DAO will be restructured to be more profit-oriented, along with transparent on-chain financial reporting.

To be honest, Yearn's monthly revenue is currently less than $200,000, which doesn't seem like much. But the goal of this series of moves is very clear - to turn things around in the new wave of liquidity in DeFi. However, history has its lessons: the escrow token reform was also approved in 2023, but nobody used it. So whether this time it will succeed depends on the execution ability. The proposal is now being discussed in the governance forum and must be approved by unanimous vote to take effect.