Yearn Finance modifies token economics and adds Vote Escrow mechanism

Yearn Finance modifies token economics and adds a Vote Escrow mechanism. Stakeholders can lock their stakes for up to 4 years to convert them into non-transferable veYFI tokens to earn YFI rewards, which are issued in the form of dYFI and can be used to redeem YFI tokens at a discount. The longer the lock-up period, the higher the returns. Users can flexibly exit their positions before the end of the lock-up period, but their rewards will face a penalty of up to 75%. (The Defiant)