Uniswap Foundation Seeks Funding for DeFi Ecosystem
The Uniswap Foundation (UF) has submitted a proposal for a second round of funding to support their vision of strengthening the DeFi ecosystem. Despite the native token, UNI, reaching an all-time low in value, the UF is requesting $62 million in funding, with an on-chain vote scheduled for October 4th. The proposal includes a 10% buffer to address potential price volatility.
Two-Tranche Approach
The UF has divided the funding request into two tranches. This decision was made to establish their legal entity and obtain non-profit status from the IRS. After receiving non-profit status earlier this year, the UF is now seeking the second tranche of funding.
Initially aiming for $20 million, the first tranche yielded $17.3 million due to the decrease in UNI token prices. As a result, the UF is requesting $56.7 million in the second tranche, with an additional 10% buffer to account for price fluctuations.
Funding Allocation and Expenses
Over the past year, the UF has disbursed $4.8 million in research grants and allocated $3.15 million for operations. However, they incurred a loss of $1.29 million due to the decline in UNI token prices between the initial governance proposal and fund receipt.
In the future, the UF plans to disburse $10-$15 million per year from its remaining $53.2 million in grants capital, with an increasing yearly amount.
UNI Price Analysis
The UNI token has recently experienced consolidation, trading within a specific price range. It has declined by 0.5% in the past fourteen days and by 9.6% in the last 30 days, reaching a four-month low. Despite these trends, Uniswap is moving forward with its funding proposal to support the DeFi ecosystem.
Hot Take: Uniswap Pursues Funding Amidst UNI Price Drop
Despite facing a decline in UNI token prices, the Uniswap Foundation is determined to secure funding to further develop the DeFi ecosystem. Their proposal for a second round of funding, totaling $62 million, aims to support their vision and strengthen the platform. With the first tranche already approved and a 10% buffer included in the request, Uniswap remains committed to advancing DeFi despite market fluctuations. The upcoming on-chain vote will determine the fate of this proposal, highlighting the community’s involvement and decision-making process in shaping the future of Uniswap.
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