Decentralized crypto exchange Uniswap (UNI) is skyrocketing after an upgrade was proposed to reward its token holders. In a new announcement, The Uniswap Foundation says the protocol’s governance lead has put forth a proposal that would reward traders who have staked and delegated UNI. According to the team, the proposal is of utmost importance to […]
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The largest decentralized exchange (dex) platform by global trade volume, Uniswap, is looking to raise between $100 and $200 million, according to a report citing people familiar with the company. The funding round is currently in a nascent stage as the report claims Uniswap has been “engaging with a number of investors.” Sources Say Uniswap […]
The Uniswap Foundation (UF), the group behind the decentralized exchange (dex) Uniswap, announced the first wave of foundation grants on Wednesday as it plans to distribute $1.8 million total, awarded across 14 grants. The UF announcement details that a touch more than $800K will be awarded to Uniswap Diamond, a project being constructed by GFX […]
The foundation aims to streamline Uniswap's grants program and "reinvigorate governance."
The $74 million plan by two former Uniswap Lab executives for a new Uniswap Foundation has just become reality after their proposal received over 99% of the votes from UNI token holders.
According to the initial proposal, the foundation aims to streamline Uniswap’s Grant Program (UPG) and reduce friction in the protocol’s governance system.
Former Uniswap Labs executive Devin Walsh, now serving as executive director of UF shared the results in a tweet on Aug. 24, noting that the proposal to create the foundation “passed its final vote!”
Last night our proposal to create the Uniswap Foundation passed its final vote!
— Devin Walsh (@devinawalsh) August 24, 2022
https://t.co/B2VOAeg5is
According to the Uniswap website, the foundation saw more than 86 million, or 99% of total votes in favor of the proposal, with only 770 votes against it. The votes in favor come despite the initial proposal seeing mixed community reaction when it was first announced on Aug. 5.
The voting period started on Aug. 17, and was cut off at 2:19 pm GMT +10 deadline on Aug. 24. The votes were conducted on Uniswap’s app, with voters needing to hold the UNI token in order to vote. For the vote to pass, a threshold of 40 million votes was needed to be cast in favor of the UF.
Walsh said that the UF has already “hit the ground running” on its top priorities, including interviewing "talented, values-aligned candidates" to join the team, scaling up the UPG and "reinvigorating governance."
According to the Uniswap Foundation's job board, employees they're looking to hire include Community Lead, Partnerships Lead, Governance Lead, Grants Analyst and Leads, Communications and Finance Leads, and Developer Relations and Protocol Leads.
But despite the votes being cast heavily in favor of the UF, some on Twitter have questioned how much control the community actually has on Uniswap decisions.
Chainlink Community Ambassador “ChainLinkGod," who has 150,200 followers on Twitter, stated that Uniswap’s decentralized autonomous organization (DAO) should “determine how funds raised are used” rather than a centralized foundation.
The Uniswap DAO is also a joke in regards to decentralization theater, doesn’t exactly help your argument here, but at least they control $3.6B in UNI (largest DAO by AUM)
— ChainLinkGod.eth (@ChainLinkGod) August 20, 2022
Typically it is the role of a DAO determine how funds raised are used, not a centralized foundation
Another community member suggested that the voting outcome was “whale run”, with the top 20 addresses voting with 81.57 million, or 99.7% of tokens used to vote in the proposal.
Uniswap has a history of passing fairly unanimous proposals. Today the community voted to accept a US$ 74mn expense to create the Uniswap Foundation (UF).
— Ishita Srivastava (@ishita7077) August 24, 2022
But....US$ 74mn is a lot of money...and was it really the community that voted this in?https://t.co/BeavvElVK3
Walsh, along with now Head of Operations Ken Ng plans on building out a team of 12 and have requested $74 million from the Uniswap decentralized autonomous organization (DAO) treasury, which currently holds over $3 billion worth of UNI tokens.
Of the $74 million, the UF plans on distributing $60 million to the Uniswap Grant Program (UGP) and the remaining $14 million to cover the operating budget.
Uniswap is the world’s largest decentralized exchange (DEX) by trading volume. Since Uniswap’s inception in Nov. 2018, the protocol has supported more than $1 trillion in cumulative volume, with its daily volume often competing with that of centralized exchange Coinbase.
The largest DEX in the world could be supported by a new $74 million foundation if a new proposal from two community members passes a vote later this month.
The Uniswap Labs community has already begun mulling over a new proposal that would form a Uniswap Foundation based in the United States (U.S.), but first, it's going to cost $74 million.
The proposal has garnered mixed feedback from the community so far, with many praising the foundation’s plans to support and expand the Uniswap ecosystem, while others have balked at its hefty price tag.
The Aug. 5 proposal was put forth by Uniswap Labs’ former Chief of Staff Devin Walsh and Uniswap Grant Program lead Kenneth Ng, noting the foundation's main aim is to “support the Protocol’s decentralized growth, reinvigorate governance, and serve as a Protocol advocate” according to Walsh.
If it passes a vote, the Uniswap Foundation (UF) would be incorporated in Delaware and headed by Walsh as executive director, while Ng will become head of operations.
To make her vision a reality, Walsh has asked for $74 million in UNI tokens over three years, $60 million of which would be used for its own Uniswap Grant Program (UGP), while another $14 million will be used as “operating budget” to build out a team of 12.
Uniswap is the world’s largest decentralized exchange (DEX) by trading volume. Uniswap V3, the third version of the DEX has done $793.8 billion in volume over the past 24 hours, putting it on par with centralized exchanges (CEXs) Huobi Global and KuCoin according to CoinGecko.
Uniswap founder Hayden Adams proclaimed in an Aug. 4 tweet that he was “Sooo excited about this proposal.” Adams seemed confident that the proposal would pass when he added, “After this passes, the Foundation will be yet another team working towards a future where the Protocol does not just survive — it thrives!”
5/ The strength of an ecosystem grows with each additional team building and working towards its success.
— hayden.eth (@haydenzadams) August 4, 2022
Imo, after this passes, the Foundation will be yet another team working towards a future where the Protocol does not just survive — it thrives!
Although the proposal has so far enjoyed a fair amount of support from Adams and others in the Uniswap community, it has run into a significant cohort of detractors who say the price is far too high.
Partner at Cinneamhain Ventures Adam Cochran shared his approval for the goals of the UF, but added in an Aug. 4 tweet that the $60 million for the UGP “is misguided at this phase.”
1/17
— Adam Cochran (adamscochran.eth) (@adamscochran) August 4, 2022
So I don't mind the proposal to create a Uniswap Foundation - and I think its got decent planning.
But $60M to UGP is misguided at this phase.
Uni Grants Program has thus far deployed ~$7M in grants so and its frankly been underwhelming.https://t.co/Ri3VNOBh6c
Cochran pointed out that the $7 million in grants that the current UGP has already issued have been spent on “underwhelming” issues. He concluded that while there have been several worthwhil ventures the UGP has invested in, “I don't think the current performance merits "Give us $60M + $14M to run it for 3 years.”
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Co-creator of decentralized game Dark Forest Scott Sunarto also felt that the UF’s goals were in line with the protocol’s potential for growth, but that there was too much “fluff” in the proposal. He suggested the UF concentrate efforts on “protocol growth and R&D.”
The proposal will be put to a final vote on the Snapshot governance voting platform on Aug. 8 if the current ongoing straw poll passes.
UNI is up 1.4% over the past 24 hours, trading at $9.04 according to CoinGecko.
