Question 1

What is YFI?

Accepted Answer

YFI is the governance token of the yearn.finance ecosystem. Yearn positions itself as a group of developers, users, and contributors building on-chain, decentralized yield products. Current official governance information assigns governance rights to stYFI holders, so “holding YFI” and “participating in governance as stYFI” are not entirely the same state; specific staking, unstaking, and delegation operations should be confirmed through the current official interface.

Question 2

What is yearn.finance?

Accepted Answer

Yearn is an ecosystem for on-chain decentralized yield products, rather than a traditional company managed by a board of directors. Officially, it is described as a collective involving developers, users, thinkers, and practitioners. This definition indicates that its focus is on on-chain yield products and community participation; it does not guarantee yields, asset safety, or the result of any strategy. Actual product risk depends on the contracts used, underlying assets, and market conditions at the time.

Question 3

Who can participate in Yearn governance?

Accepted Answer

Yearn's current governance is controlled by stYFI holders. stYFI holders can submit and vote on off-chain proposals to decide ecosystem-level matters. This means the governance process includes at least two stages: governance views are first expressed and aggregated through off-chain proposals, and supported changes are then implemented by the prescribed execution mechanism. Merely holding tokens, reading a proposal, or joining a discussion does not mean a proposal has taken effect.

Question 4

What conditions must a Yearn proposal meet before it is implemented?

Accepted Answer

According to the official governance description, a proposal receiving more than 50% voting support enters the implementation path. More than 50% is the majority-support threshold listed on that page. Passing a vote does not mean an on-chain change is completed automatically: the proposal must still be executed by a 9-person multisig wallet, with signatures from at least 6 of its signers. This design separates governance voting from actual execution, so users should assess a proposal's voting status and execution status separately.

Question 5

What role does the Yearn multisig play in governance?

Accepted Answer

Yearn proposals that receive majority support are implemented by a 9-person multisig wallet, and changes can be executed only after at least 6 signers have signed. Multisig members are elected by stYFI holders and can be replaced by future governance votes. Therefore, the multisig is not a permanent management layer independent of governance: member selection and replacement remain subject to governance. However, whether a particular execution has been completed still requires checking the relevant proposal and on-chain execution records, rather than inferring it from the voting result alone.

Question 6

What is the difference between YFI and stYFI?

Accepted Answer

YFI is the original token; stYFI is a state or token form associated with Yearn's current staking and governance interface. The official governance page explicitly identifies stYFI holders as the governance body, while the application page provides an entry point for staking YFI into stYFI. Therefore, if the goal is to participate in governance under the current mechanism, users should not conflate “having YFI in a wallet” with “already having governance participation status.” Before operating, they should also verify the mode, contract, and current conditions displayed in the interface.

Question 7

What is the delegated-voting mode of stYFIx?

Accepted Answer

Yearn's official application provides entry points for staking and unstaking YFI, as well as stYFI and stYFIx modes. The page also states that stYFIx is a mode in which voting is delegated for passive yield generation. Delegating voting means that the arrangement for exercising voting rights changes; it should not be equated with a user personally voting on every proposal. Rewards, APR, and account data in the interface vary with the connected wallet and current state, so placeholder displays when no wallet is connected cannot be used to infer returns.

Question 8

What does historical Proposal 0 say about YFI supply?

Accepted Answer

Historical Proposal 0 records that YFI's total supply was 30,000 tokens at that time, and proposed distributing 10,000 tokens equally across the yEarn, Balancer, and Governance liquidity-mining pools. This page is a passed supply proposal from 2020 that discussed whether to retain the ability to mint YFI in the future. It can therefore be used to understand early supply discussions and initial-distribution background, but not alone as evidence of current total supply, current circulating supply, or current issuance policy.

Question 9

What was the core choice discussed in the historical YFI supply proposal?

Accepted Answer

The central question in Proposal 0 was not simply “how much to distribute,” but whether the protocol should retain the ability to mint additional YFI in the future. In the proposal, the “for” option allowed future minting, with weekly distributions to be discussed later; the “against” option limited supply to 30,000 tokens. This shows that the early supply policy was determined through a governance choice, rather than being automatically and permanently locked by a fixed technical rule. Individual comments or ideas in the discussion thread do not equal a protocol mechanism that remains effective indefinitely.

Question 10

How does YFI's governance role translate into actual changes?

Accepted Answer

YFI's governance value comes from its pathway for participating in proposals in the Yearn ecosystem, rather than a fixed claim on a yield product. Governance proposals and voting are conducted by stYFI holders, and proposals receiving majority support are then implemented by the multisig according to its threshold. Therefore, governance influence is a process of “proposal—vote—multisig execution.” Voting rights themselves do not guarantee that a proposal will pass, nor do they guarantee that a governance decision will produce a positive economic outcome.

Question 11

What components should be understood when using the Yearn staking interface?

Accepted Answer

Yearn's current public staking interface lists the YFI token, stYFI staking, the stYFIx delegation vault, and reward-claiming contracts, and provides entry points for staking and unstaking. These are the current operational components shown by the interface and should not be used to infer undisclosed lock-up periods, fixed annualized returns, or reward conditions. Connecting a wallet and checking the network, contracts, asset-conversion ratio, and page prompts before confirming a transaction are necessary steps to distinguish interface functions from actual transaction outcomes.

Question 12

Why should YFI's historical supply materials be distinguished from its current governance mechanism?

Accepted Answer

When understanding YFI, historical supply materials and the current governance mechanism should be kept separate: Proposal 0 records 2020 supply discussions and early liquidity-mining allocations; current official governance documentation describes voting by stYFI holders and the multisig execution process. Writing a historical proposal as a current reward, or inferring historical issuance rules from the current staking interface, confuses time and mechanism. Specific rules that can currently be participated in are subject to real-time official governance and application pages.

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