YFI inventor Andre Cronje: The decentralization of yearn's governance falls between Balancer and Compound.

YFI inventor Andre Cronje discussed the governance rights of DeFi protocols on the 21st, suggesting that we may soon see instances of "vote buying governance" in action. In simple terms, many DeFi protocols issue governance tokens to platform users, granting them voting rights to express opinions on major decisions and determine the direction of development. However, as the voting rights become more centralized, it will affect the decentralization of a protocol's development.

Last week he stated, "I think we will soon see effective capital bribery events in governance. Typically, lenders are for leverage or shorting. They are becoming the 'pay for vote' guardians of governance. I wonder which protocol will see the first such event."

Andre Cronje continues to focus on the issue of governance rights distribution:

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Andre Cronje: Currently Curve Has Too Much Voting Power, Voting is Meaningless

On the evening of the 23rd, Andre Cronje stated that the founding team of Curve holds nearly 80% of the voting power, making it meaningless for others to vote.

According to Curve's current locking and staking mechanism, if users choose to stake for only one year instead of the required four-year lock-up, they would need to lock up 150 million CRV tokens to reduce the founding team's voting power to less than 50%.

Previously reported on Curve's mining reward mechanism and its voting power calculation method, Andre Cronje mentioned that in such a system, he feels it's fine for the founding team to have the majority of governance rights, finding nothing wrong with it.

The Curve team also responded, stating that the founding team will relinquish their voting power until more people participate in staking for voting rights.

https://twitter.com/AndreCronjeTech/status/1297536932063457281

How Distributed is Yearn's Governance...?

On the 24th, Andre Cronje also investigated the governance status of different protocols. He expressed surprise and happiness to see that Compound has 32.83% of tokens participating in governance, and he admires Compound's founder Robert Leshner for giving up the majority of governance rights.

Furthermore, he also looked into Balancer, where governance appears to be quite distributed, but the tokens participating in governance are relatively few, at only 2.67%. However, Andre Cronje did not specifically investigate who the owners of these addresses are.

Returning to Yearn itself, Andre Cronje stated that the distribution of our governance rights falls between Balancer and Compound, with a token participation rate of 14.02%.

As a liquidity mining farmer, do you care more about how valuable the harvest is or how long this piece of land can be stably cultivated?