UNI Treasury Proposal
A proposal has been made by the Uniswap community to delegate 10 million UNI tokens from the DAO’s treasury to underrepresented delegates. The top four candidates would receive up to 2.5 million UNI, while the remaining tokens would be equally delegated to other candidates.
The proposal is currently in the ‘temperature check’ phase, awaiting an on-chain vote before delegates would actually receive UNI from the DAO’s treasury. These tokens would not be tradeable and would be used solely for voting purposes, giving these delegates a stronger voice in governance proposals.
Centralization Issue and Proposals
The current Uniswap system is centralized, with large token holders such as a16z, Dharma, and Gauntlet having significant influence. This has led to smaller delegates having little impact on voting. In the past, proposals have been passed due to the voting power of a single entity, such as Dharma in 2020 proposing to lower the quorum threshold, giving it even more voting power.
UNI Price Movement
The price of UNI has surged in the past 24 hours, reaching an intraday and 14-week high of $6.26 during the Asian trading session. This represents an 18% increase for the day, outperforming the broader crypto markets. Over the past month, UNI has gained 42% as the crypto markets recover, but it remains 86% below its May 2021 all-time high of $44.92.
The proposal seeks to delegate 10 million UNI from the DAO’s treasury to underrepresented delegates.
The top four candidates get up to 2.5 million UNI, and the rest of the tokens will be equally delegated to other candidates.
The proposal, currently in ‘temperature check’, now faces an on-chain vote before delegates would receive UNI from the DAO’s treasury.
Moreover, the tokens would not be tradeable, just used by these delegates for voting purposes, increasing their say in governance proposals.
4/ 1inch Vote
whales such as a16z, Dharma, and Gauntlet.
The current system remains centralized in the hands of these huge token holders so smaller delegates have little chance to have their votes matter.
Several proposals have been passed in previous years due to the voting power of just a single entity. In 2020, Dharma proposed dropping the quorum threshold from 40 million UNI, or 4% of the total, to 3% giving it even more voting power.
UNI Price Skyrockets
Uniswap prices have skyrocketed over the past 24 hours though it remains to be seen whether this is directly related to the proposal.
UNI has climbed from $5.25 to hit an intraday and 14-week high of $6.26 during the Thursday morning Asian trading session. It is currently up 18% on the day outperforming the rest of the crypto markets.
The DeFi exchange token has made 42% over the past month as crypto markets recover. However, UNI remains down 86% from its May 2021 all-time high of $44.92.
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