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Uniswap’s first governance set to be approved despite resistance

Photo of: Sangeetha Golchha
by Sangeetha Golchha

Uniswap has exploded the DeFi market with the release of its token UNI. The protocol is getting everything right with extended support from the community and the members of the crypto space. 

And now, following the launch of UNI, its governance token, it is set to get approval for its first governance proposal. The Uniswap’s first governance proposal was initiated by the Dharma platform on October 13th. The vote intends to decrease the proposal submission and the values of the quorum by making a strong case for implementation of the threshold values of 3 million UNI and 30 million UNI in the same order. While many are opposing the same, but a majority of the community has favored the change and with this, there is all likelihood that the participation rate also increases. 

More details

The novel governance system presently has high thresholds for proposal submission which is relative to total UNI delegation. Since the launch of the governance system, there have been some unending discussions to make governance even more accessible. 

Dharma which has been a part of these discussions right from the beginning has apparently prepared a proposal that when applied has the potential to make the governance more accessible. This will, at the same time also ensure that Uniswap governance is not subjected to unilateral damaging factors. 

The proposal description enumerates that by keeping lower thresholds it will make governance participation more self-governing, involving, and transparent. The participation being high, many people will be able to submit the proposed change. The voting period for the same will end on October 19th. 

Andre Cronje, founder of Yearn.finance has also lent his voice to the discussion. He has asked the members of the community to vote in favor of the change. As per the latest voting patterns registered, a great majority of 39.5 million have voted for the change while approximately 683,000 have voted against the change. 

Source: Twitter

A classic case of David vs Goliath

What needs to be remembered is that not everyone has accepted the new idea of reduced threshold values. The Dharma-initiated governance proposal has come under the fire of criticism because people think it might favor the whales. The community members have directly said that large UNI holders like Dharma and Gauntlet are in for a treat. People have been criticizing that Uniswap is becoming more centralized. As it stands, there are almost 98% of the votes for the proposal and over 60% of the votes have come from the top two delegates Dharma and Gauntlet as per a Uniswap Discord member Felton blog post. A screenshot shows top delegates voting addresses which says that almost 30 million votes have come from two entities alone. Felton has been continually appealing for a refusal to accept this vote so that a handful of whales do not call the shots. 

Source: David Felton

“Lowering the quorum creates the possibility for situations like the DAO hack where malicious proposals lost investors millions.”

Pine.finance founder Agustin Aguilar has also voted against the change because he says that his priority is to preserve the integrity of the governance.