Uniswap Foundation Seeks $46.2 Million Funding for Next Two Years
The Uniswap Foundation has proposed a governance vote to secure additional funding of $46.2 million for the next two years. The aim of this proposal is to support the foundation’s operations and grant runway, while also providing a buffer against price risks. The vote is scheduled to take place on October 12, 2023, following a Temperature Check.
Expanding Growth and Innovation in the DeFi Sector
The requested funds, equivalent to 10,685,984.71 UNI at a 30-day TWAP of $4.32342, will be allocated towards strategic initiatives that aim to make Uniswap a vital liquidity layer for decentralized finance (DeFi). The ultimate goal is to create a robust, diverse, and values-aligned ecosystem within the DeFi sector.
Allocation of Funds
The proposed allocation of funds includes $28.33 million for grants and $13.6 million (inclusive of 508,000 UNI) for operations over the specified timeframe. An additional 10% buffer is included to mitigate price volatility. The funding request is based on the 30-day TWAP conversion rate at the time of the proposal.
Achievements and Future Plans
The Uniswap Foundation has achieved significant milestones since its inception, such as launching Oku Trade and establishing the TL;DR Research Institute. Partnerships with Gauntlet and hackathon sponsorships have also been instrumental in fostering innovation within the Uniswap ecosystem. Moving forward, the foundation plans to develop the Hooks ecosystem, launch the TL;DR Fellowship, and expand its team across different domains.
Treasury Diversification and Risk Mitigation
Historically, the Uniswap Foundation has awarded $4.8 million in grants and allocated $3.15 million to operations. The foundation follows a treasury diversification policy to preserve capital and mitigate risks. This includes diversifying operational funds into low-risk yield-bearing assets, stablecoins, and maintaining a portion in an FDIC-insured bank account.
Securing Funding for a Robust DeFi Ecosystem
The Uniswap Foundation’s governance vote aims to secure additional funding and strengthen its commitment to fostering a robust ecosystem around the Uniswap Protocol. With strategic initiatives, transparent financial allocation, and a structured approach, the foundation is dedicated to achieving long-term objectives in the DeFi landscape.
Hot Take: Uniswap Foundation Seeks $46.2 Million Funding for Future Growth
The Uniswap Foundation has put forward a governance proposal to secure $46.2 million in funding over the next two years. This funding will be used to support the foundation’s operations and grant runway while also providing a buffer against price risks. The proposal reflects the foundation’s commitment to expanding growth and innovation in the decentralized finance sector, with the goal of creating a robust ecosystem around the Uniswap Protocol. By following a treasury diversification policy and adopting a structured approach, the foundation aims to achieve its long-term objectives in the DeFi landscape.