Yearn shares information about a new grant platform known as Coordinape, new creation which would aid the distribution of grants. The recently created platform would help Yearn distribute a new monthly budget of around $40,000 for the community. Sources explain that this new move would help the protocol decentralized its governance.
The decentralized finance industry is growing bigger with new additions and numerous projects to keep the community’s financial transactions decentralized. This has helped people achieve autonomy in terms of their financial holding, which is never the case with the traditional financial system. Financial institutions are known to interfere in matters concerning the use of their platform, which led to the birth of DeFi protocols to achieve impeccable decentralization.
Yearn introduces a platform for grant distribution
Interestingly, the protocol’s founder, Andre Cronje, revealed this new information through the protocol’s website, which excited many people in the industry. Cronje had previously said he is no longer involved in the business’s daily development, and his new involvement raises some eyebrows.
According to the recently released blog post, members of the coordinape would have some allocation points, and this could be given to other people they work with every month. At the month’s end, people with the largest allocation points would get the most of the budget. The protocol understands that the points could be distributed through programs, which include colony.
The digital asset service provider explained that the in-house solution, which it has adopted against programming, would meet Yearn’s needs. One of Yearn’s prominent members, Tracheopteryx, explained some reasons why the community opted out of the DAO rewards option.
He explained that the community has a budget of $40,000 monthly for grants while having a notable number of contributors. He added that the community has to find a way to distribute the budget. The contributor explained that with DAO’s usage, the community could share the rewards one by one, but that doesn’t scale.
Contributors decide who gets part of the grant
He explained more on the newly created grant platform by sharing Coordinape’s support for token allocation by contributors. The expert opined that it’s a better way to allocate the points, as contributors give those tokens to those they believe bring value to the community. According to him, this way is more accurate than the DAO reward, and that it assigns asymmetric rewards.
According to sources, the prominent member and many other contributors have been working towards making Coodinape since early February. The creators shared that Teal is the inspiration behind the platform’s creation, as the former is very keen on workers’ self-management.
Tracheopteryx explained that the platform’s reason is primarily for changing the protocol’s governance structure, which predominately gives more power to some segments. There will be more power for the autonomous and self-managed contributors. This change would likely change how things are being run in the protocol as contributors mainly give other players who they think deserve the token, and that would be more accurate than setting up a DAO to grant rewards to all users.