Powering YieldNest’s Next Chapter of Governance

At Aragon, we know that governance isn’t just about collaboration, it’s about sustainability, growth, and unlocking long-term value. That’s why we’re proud to provide the technology behind YieldNest’s newly launched governance system purpose-built for incentive alignment, value accrual, and long-term protocol growth.

As YieldNest approaches their TGE, they aren’t just launching a token, they’re launching the infrastructure to govern how value flows through their ecosystem. That means staking, voting, and participating in decisions that directly impact protocol rewards, strategy execution, and product evolution.

To bring this vision to life, they needed a governance framework that could do two things well: align stakeholders through vote-escrowed staking (veYND) and route incentives efficiently via gauges. It needed to be modular, upgradable, and transparent—without adding friction for users or requiring custom contracts for every change.

Building Governance That Works For YieldNest Users

The governance system we built for YieldNest is powered by Aragon OSx, our modular governance framework that gives protocols the tools to manage proposals, voting, and execution in a secure, transparent, and adaptable way.

For YieldNest, this means governance decisions can be surfaced, voted on, and executed fully onchain, using clearly defined thresholds, custom logic, and modular flows that evolve alongside the protocol.

This structure creates a foundation for YieldNest to grow governance at their own pace, with the flexibility to adapt as participation scales.

When a proposal gains traction in the community, it can be elevated into a formal vote through Aragon’s intuitive interface. This ensures that decision-making remains open, participatory, and transparent, while also being enforceable and secure onchain. There are clearly defined support thresholds and quorum rules, but no need for a technical background to participate. The experience is designed to feel natural, not overwhelming.

But governance isn’t just about voting, it’s about value and commitment. YieldNest’s governance is designed around a simple principle: only those with skin in the game earn a voice.

Voting power is exclusively held by users who stake their YND, either directly through veYND or via sdYND with Stake DAO’s liquid locker. This dual-path approach ensures that governance reflects the interests of committed participants, those actively contributing to the protocol’s success, whether through long-term staking or delegated participation.

In this model, influence isn’t given, it’s earned.

veYND: Building for Value Accrual

For active contributors and long-term believers, YieldNest’s governance model offers the ability to stake YND tokens and receive veYND, vote-escrowed tokens that grant both influence and a share of protocol revenue. The longer users lock up their tokens, the greater their voting power and rewards become.

This isn’t abstract governance. veYND holders will directly influence core decisions, from fee structures and strategy integrations to product roadmap and subDAO leadership. The longer and larger they stake, the more voting power they hold, giving committed participants real weight in shaping the protocol’s future.

And the incentives are just as real: YieldNest uses a buyback-and-distribute model, meaning protocol revenue is routed back to veYND holders. As the protocol grows, so does the pool of rewards, tying governance power directly to long-term alignment and economic upside.

sdYND: Passive Participation, Active Rewards

For users who prefer a more hands-off approach, YieldNest has partnered with Stake DAO to offer a liquid staking path. When you stake your YND through Stake DAO’s Liquid Locker, you receive sdYND, a liquid ERC-20 token that represents your staked position and can be used across DeFi.

While sdYND holders don’t vote directly, their influence is aggregated and exercised by Stake DAO, which casts votes on behalf of its locker participants. This delegation model balances protocol alignment with convenience, Stake DAO optimizes votes to support YieldNest’s long-term growth, while users passively benefit from compounded rewards and future cross-chain compatibility.

There’s no active management required, and no forfeiting yield to stay liquid. With sdYND, your tokens keep working, earning, compounding, and staying flexible, while you take a backseat.

Together, veYND and sdYND create a governance framework that rewards participation, respects different levels of engagement, and scales with the protocol’s ambitions.

Governance That Grows With YieldNest

Because YieldNest’s governance is built on Aragon OSx, it’s not locked into a rigid, one-size-fits-all structure. As the protocol matures and community dynamics shift, their governance system can evolve with it, no redeployments, no migrations, no starting from scratch.

This is governance built to last: modular, upgradeable, and aligned with those who commit real capital and stake long-term. It’s not about rewarding the loudest voices, it’s about giving decision-making power to those truly invested in the protocol’s success.

What’s next for Yieldnest

We’re proud to be building alongside YieldNest and Stake DAO to support a governance model that reflects the next generation of onchain coordination, one where users don’t just vote, they shape the protocol’s direction and share in its success.

With veYND and sdYND, governance isn’t symbolic, it’s actionable. Those who stake gain real control over key decisions and direct access to protocol rewards, creating a structure where the incentives are clear: the more aligned you are with YieldNest’s future, the more value you help unlock and the more you earn in return.

This is what real ownership looks like: influence backed by commitment, and upside tied to impact.

Governance is no longer just about decisions. It’s about aligning incentives, distributing value, and giving communities the tools to shape their future. YieldNest’s system proves that when done right, governance can be more than infrastructure, it can be the foundation of sustainable growth.

We’re just getting started.

Explore modular governance at aragon.org.