Yam Finance, a DeFi project, witnesses a discussion among its token holders on whether or not to dissolve the treasury of the project and distribute the funds between the token holders. This is considered an effort to salvage the remnants of the respective project. The position of Yam Finance is that of a protocol specified for yield farming. It was established in DeFi Summer and was devised from another project entitled YFI.
Yam Finance Ponders over Treasury Distribution among Its Token Holders
The project rose high in its progress and reached the figure of up to $600M in assets just in the initial forty-eight hours after it was launched, in advance of shortly getting closed because of a bug. The project would move on to turn into the 7th-biggest DeFi venue amid its craze for yield farming. Even now, when the hype related to the DeFi sector has diminished and the non-fungible tokens (NFT) are getting considerably more attention, Yam Finance and other such projects have been deprived of due consideration.
As a consequence, the token of the project is continuously declining as it has come down from above $6 to only $0.17 (which is its price at present). Because of this as well as the deficiency in making a significant advancement, the community has lost its trust in the present trajectory. A community member of the venue noted in the proposal that for several years the Yam contributors have been making diverse attempts in diverse as well as contradictory directions.
After that, he added, the platform is now standing at a crucial juncture to decide on whether to continue its slumping trajectory (of nearly 97% value drop from its all-time high) or let its token holders redeem those assets which are rightfully owned by them. The chief contributors are getting approximately $30,000 from the treasury on a regular monthly basis for the development work’s funding, as noted by the community member, even then there was nothing significant to be shown for this.
Community Members Recommend Dissolution of Yam’s Treasury
The project would largely be shut down by the proposal, the funding for the additional development would be stopped, and the treasury assets would witness a split between the token holders. The respective proposal also disclosed that the right, however unfortunate, decision to be taken by Yam Finance would be to get dissolved ahead of any further destruction in the value thereof. A chief contributor going by the name “Feddas” replied in strong words to confront the proposal.
He claimed that the proposal seemed to be a tactical step taken by those who intend to purchase the altcoin in return for less price than that which could be redeemed at the time of the treasury’s dissolution. Further than this, the opinions of the commentators were different. Nevertheless, there were two commentators who agreed with the concept, both of whom expressed similar points and asserted that the respective idea was more beneficial than doing nothing at all.
