Yearn Finance has modified its token economics by adding a VE mechanism. Stakeholders can now lock their tokens for up to 4 years to convert them into non-transferable veYFI tokens and earn YFI rewards, which are distributed in the form of dYFI and can be used to purchase YFI tokens at a discounted price. The longer the lock-up period, the higher the returns, but users may face up to a 75% penalty for withdrawing their position before the lock-up period ends.