Uniswap DAO Votes on Reclaiming $42 Million in UNI, Reshaping Delegation Structure
Summary
- Uniswap DAO is voting on a proposal to reclaim about $42 million worth of UNI tokens.
- The tokens were used between 2022 and 2023 for a total loan of 12.5 million UNI to help expand governance participation.
- The move is aimed at addressing conflicts of interest in the delegation structure and reworking the power structure, with more than half of votes in favor so far.
Forecast Trend Report by Period
Uniswap DAO is weighing a plan to reclaim UNI tokens it previously delegated, as the decentralized exchange’s governance body moves to overhaul its governance structure and curb concentrations of voting power.
DL News reported on May 5 that the DAO is voting on a proposal to take back about $42 million worth of UNI tokens from delegates.
The tokens were lent out between 2022 and 2023 to the Uniswap Foundation and key delegates, totaling 12.5 million UNI, to broaden participation in governance.
Supporters of the proposal say that objective has now been met, with governance participation improving sharply. Recent votes have drawn turnout well above the quorum threshold.
The move is also meant to address potential conflicts of interest in the delegation structure. Some delegates have been criticized for wielding voting power that exceeds their actual economic stake.
The proposal also comes amid continued criticism over the level of decentralization in Uniswap governance, as the DAO seeks to reset how authority is distributed.
Voting will run through May 8, with more than half of ballots cast so far backing the measure.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
