Uniswap DAO Moves $110 Million in UNI for Governance Delegates Despite Community Concerns
Uniswap DAO has passed an initial governance proposal to allocate 18 million UNI, valued at roughly $110 million, to 12 governance delegates. This is part of the Treasury Delegation Program to enhance the DAO’s voting activity. Despite passing the initial vote, the proposal faces community scrutiny, with only a 60% approval rate and 30% of participants abstaining from voting. The community expressed concerns about potential centralization of governance power and the political affiliations of selected delegates. The proposal also includes performance measures, with delegates potentially earning additional rewards if they maintain high participation in governance votes. This program follows a similar initiative launched in December 2023. The decision now awaits an official on-chain vote.
Neutral
The proposal’s passage indicates a move towards more active governance participation, yet the mixed community reaction and concerns about centralization could affect the organization’s decentralization narrative and investor confidence. Historically, governance changes can have a neutral to mixed impact on market prices, particularly if concerns about centralization and political ties persist. However, if the program is perceived to increase governance efficacy, it might stabilizes market perceptions around Uniswap. Long-term, maintaining decentralization while incentivizing participation could bolster the platform’s strength.