Summary
This update to YieldNest’s tokenomics aimed at strengthening long-term protocol sustainability, reducing short-term volatility, and aligning incentives across all stakeholders, including users, partners, and early backers.
Context & Rationale
Since launch, market conditions, ecosystem expectations, and contributor dynamics have shifted. A key concern raised by early contributors and key stakeholders has been the misalignment between long-term vesting schedules and the near-term effort required to push the protocol through critical growth phases. The majority of the lead contributors & key stakeholders have approved the decision.
In parallel, partners and contributors emphasized the need for stronger short-term momentum, particularly in areas such as ecosystem incentives, liquidity depth, and team-led execution.
Rather than compromising protocol durability or retail fairness, we propose tokenomics adjustments that:
- Realign contributor incentives with immediate execution timelines
- Preserve fair distribution and airdrop eligibility
- Strengthen protocol health in both the short and long term
- Strengthen token utility and supply-side health
- Provide a more straightforward path toward value accrual for all stakeholders
Changes
- Team & Advisors
- Previous: 1 year cliff, vesting linearly for 36 months thereafter.
- Proposed: No change.
- Strategic Round
- Previous: 1 year cliff, vesting linearly for 36 months thereafter.
- Proposed: No cliff, 36-month linear vest starting at TGE Date.
- Private Sale
- Previous: 1 year cliff, vesting linearly for 36 months thereafter.
- Proposed: No cliff, unlocked at TGE based on prior completed 12-month vesting schedule.
- No change to:
- Total supply
- Community Incentives
- Airdrop allocation
- Core product mechanics
YieldNest is committed to the long-term success of the protocol. We accept short-term price volatility as part of the journey and remain focused on building sustainable value and real utility for years to come. Our priority is to align incentives, ship products, and grow the ecosystem, not to chase quick wins.
Once the governance voting system is fully implemented, all future proposals will be open to community voting, allowing users to directly participate in key protocol decisions. While the framework is being finalized, the system is not live yet. Updates on the rollout will follow soon.