Yearn Finance is facing a pivotal moment as community members review a proposal that could dramatically alter how the DeFi protocol rewards its users and organizes governance.

The idea, introduced by a contributor known as “0xPickles,” centers on funneling the vast majority of Yearn’s revenue directly back to tokenholders.

Under the plan, YFI holders who lock their tokens would receive new staking certificates, called stYFI, which act as proof of participation in the revamped rewards system.

But the suggested reforms go beyond staking. The proposal outlines a streamlined model designed to strip away Yearn’s complex revenue distribution methods in favor of direct payments.

It also calls for stronger financial transparency, requiring any contributor who seeks funding to provide on-chain reporting as part of their request.

To encourage long-term development, the package sets aside roughly 1,700 YFI — worth about half a million dollars — for a capped incentive pool. The funds would reward contributors who deliver sustained value, ensuring compensation aligns with measurable performance.

If approved, these reforms would represent one of the most sweeping shifts in Yearn’s history, potentially redefining the relationship between governance, incentives, and protocol growth.