The YFI token is the governance token for the Yearn Finance protocol. It provides holders with the ability to participate in the governance of the protocol, which includes voting on proposed changes and upgrades. YFI holders also receive rewards in the form of fees generated by the protocol. These rewards are distributed according to the tokenomics of the protocol, which is currently evolving. With the upcoming launch of veYFI, YFI holders will be able to stake their tokens and receive additional rewards. This will further increase the utility of the YFI token and provide holders with more opportunities to benefit from the protocol.