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Yearn Finance Unveils Decentralized Payroll Management Platform

Yearn Finance Unveils Decentralized Payroll Management Platform

Prominent yield vault protocol Yearn Finance has unveiled the details about Coordinape. The new platform will distribute the $40,000-per-month Yearn DAO community grants budget in a more decentralized manner. Moreover, Coordinape enables decentralized teams to designate and reward contributors with funds autonomously. This is related to DAO’s without top-down management or HR departments. Each Coordinape member will have an established quantity of “allocation points” to assign to other members they operated through a given month. Members with the most communications and allocations will gain weighted parts of the grants budget.

Andre Cronje elucidates in the blog post that DAOs do not have the resources that corporations possess. These resources involve top-down management and HR, so incentivizing and rewarding contributors can be challenging to manage. Moreover, for the Yearn DAO, governance weighted salaries were proposals set up by community members. These need active management and do not scale well, he continued. The blog post further detailed that users and contributors can register and select the team members they have been functioning with monthly. Moreover, based on project contributions, users can collect points. 

Intricate Details about Contributor Graph

Cronje further explained that this develops a “contributor graph.” It weighs towards the members that have the most interactions and allocations. At the end of the time, a month, in this case, contributors can ask for their grants. The amounts depend on what they have done as confirmed by other team members. This typically makes a decentralized payroll suitable to any DAO. Recently, the platform is a closed system for Yearn Finance only. However, there are plans to issue an open-source version.

Furthermore, Yearn’s native token, YFI, made 3.7% after the announcement. YFI is trading at under $40,000 at the time of press. Over the past seven days, YFI has risen by 15%. YFI has been recovering from the crypto market correction that affected DeFi-related tokens especially hard. YFI has retreated 24% from its ATH (all-time high) of $47,000 on Feb. 15. In terms of TVL, Yearn has approximately $272 million, as per DeFi Pulse. The protocol has witnessed improved liquidity on its v2 vaults after launching. Nevertheless, it’s still considerably behind its DeFi associates in terms of collateral.  

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