Uniswap Foundation Seeks Community Approval for Second Tranche of Funding
The Uniswap Foundation (UF) has submitted a proposal to secure the second tranche of funding, amounting to $62.37 million. The funding will be put to an on-chain vote, with a 10% buffer included to mitigate price volatility. The separation of the funding request into two tranches was done to allow the UF to finalize its legal entity and obtain non-profit status from the IRS before receiving the larger portion of funds. The first tranche was approved last year but experienced a decrease in value due to a drop in the price of UNI, Uniswap’s native token.
UNI Consolidates Amid Bearish Market Sentiment
Uniswap’s native token, UNI, has been trading within a narrow range between $4.198 and $4.311 over the past week. This lack of movement is attributed to the overall market trend and bearish macro outlook. UNI has experienced a 0.5% decline in the fourteen-day timeframe and a 9.6% drop over the past 30 days, reaching a four-month low. Resistance walls at $4.418 and $4.487 need to be broken for a potential rally towards $6.259.
According to Token Terminal data, Uniswap’s circulating market cap currently stands at $3.67 billion, with a recent decrease of 6.66%. The fully diluted market cap is $4.27 billion, displaying an 8.15% decrease. The total value locked (TVL) in Uniswap has also declined by 5.31%, reflecting challenges faced by the broader DeFi sector.
Hot Take: Uniswap Foundation Seeks Funding Approval Amidst Market Uncertainty
The Uniswap Foundation’s proposal to secure the second tranche of funding highlights their commitment to creating a self-sovereign Internet and a permissionless alternative to traditional finance. The on-chain vote will determine whether the desired funding of $62.37 million will be granted. Meanwhile, UNI’s consolidation in a bearish market sentiment reflects the challenges faced by the cryptocurrency market as a whole. As Uniswap continues to navigate these uncertainties, its future operations and governance will be crucial in sustaining its growth and innovation in the decentralized finance space.
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