Uniswap (UNI) DAO Votes in Favor of New Governance Process

The first off-chain Snapshot vote will be replaced by a “Request for Comment” post, among other changes.

Uniswap (UNI) DAO votes to change governance process
  • Uniswap DAO almost unanimously voted in favor of a proposal to make the governance process more frictionless.
  • The first off-chain Snapshot vote will be replaced with a “Request for Comment” post.
  • The quorum for the remaining off-chain Snapshot poll in the second phase will be increased to ten million UNI tokens.
  • It’s unclear when the new changes in Uniswap’s governance process will be implemented.

Uniswap DAO, the governance body behind the largest decentralized crypto exchange Uniswap (UNI), has voted in favor of a proposal to amend its governance process.

The vote, which started on December 14 and ended on December 21, saw virtually 100% of community members vote in favor of the proposal. Over 61 million UNI tokens were used to vote to alter the governance process, against only 193 UNI tokens that voted “No.”

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The proposal aimed at making the governance process more frictionless, something the Uniswap Foundation says it’s its ongoing goal. The first change will involve removing the first off-chain Snapshot vote and replacing it with a “Request for Comment” post.

The Uniswap Foundation said the first off-chain vote is unnecessary and only introduces more friction to the process. On the other hand, a “Request for Comment” post allows users to better understand the proposal by expressing their opinions and asking questions.

The new governance process will also see the quorum for the remaining off-chain Snapshot poll increased to ten million UNI tokens in the second phase. This will help the DAO better understand the community’s sentiment before the governance vote.

Uniswap Keeps Delivering

Uniswap has been very active during this year’s bear market in a bid to retain its dominance in the decentralized finance industry. Just yesterday, the team behind the protocol announced that protocol users could purchase digital assets with their debit and credit cards and bank accounts.

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At the beginning of December, Uniswap DAO voted in favor of a proposal to introduce a fee switch for some pools. This means that UNI holders might benefit from holding the token because the accrued fees might be redistributed.

On top of that, Uniswap has launched its NFT marketplace aggregator and airdropped $5 million to its loyal users.

All of the activity in the Uniswap ecosystem and governance comes amid a growing distrust in centralized exchanges. After the dramatic fallout of FTX, centralized exchanges like Binance, Coinbase, and others saw massive outflows as self-custody suddenly came back into fashion.

Uniswap is the largest decentralized exchange with $3.35 billion in total value locked (TVL), according to data from DefiLlama. It has done $5.52 billion in volume over the last seven days. Uniswap’s UNI token has a market capitalization of almost $4 billion, according to CoinGecko.

On the Flipside

  • It’s unclear when the new Uniswap governance changes will be implemented.
  • Uniswap has been involved in a controversy regarding its privacy policies. Some critics speculate the protocol might be collecting personal data.

Why You Should Care

Uniswap is the largest decentralized exchange in the world. Its decision to amend its governance process and make it more comfortable for users should be welcomed by its customers and the wider community.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Arturas Skur

Arturas Skur is a cryptocurrency news reporter at DailyCoin who covers Web 3.0 domains, DeFi, and Ethereum Layer-2s. With over five years of experience in journalism and public relations, Arturas brings his critical thinking and analytical abilities to deliver insightful news stories. In his free time, he enjoys hiking, playing with his dog, and reading.