Uniswap – the leading DEX – saw its first governance proposal from Dharma to lower the quorum and proposal thresholds today.
1 / We made the first proposal for @UniswapProtocol’s new governance system: reducing the UNI governance proposal and the quorum thresholds
TL; DR: We propose a threshold of 3 million UNI for the submission of proposals (previously 10 million) and 30 million UNI as a quorum (previously 40 million). Https://t.co/MDZkTfwMYt
– Dharma (@Dharma_HQ) October 12, 2020
Since early September there has been criticism of the large number of UNIs required to submit governance proposals, but this is the first official step by a well-known party to address the issue. UNI holders can vote for or against Dharma’s new proposal here. Voting ends on approximately October 19, 2020 at 11:09 am PDT.
The proposal aims to move two key components, namely the quorum and the proposal threshold, as follows:
- Reduce the quorum – or the total percentage of the offer that has to vote on a proposal for acceptance – from UNI 40 million (4% of the offer) to UNI 30 million (3% of the offer)
- Reduce the supply threshold – or the amount of UNI required to make a proposal – from 10 million UNI (1% of the supply) to 3 million UNI (0.3% of the supply)
These two steps together are intended to make it easier for more users to make suggestions, while a lower quorum theoretically means more suggestions should be passed. We saw a similar approach of longing when they reduced the quorum, a common signal that sometimes a high quorum can actually prevent valuable proposals from going through, causing apathy among common voters in DeFi and crypto in general.
This is a significant advancement for decentralized exchanges as it is the first signal that the team’s decentralization efforts through token distribution are working as intended. It’s worth noting that the very first Uniswap governance proposal was made by an entity outside of the Uniswap core team.
The UNI token
A few weeks ago, on September 16, Uniswap unveiled its native governance token, UNI. The launch made waves in the DeFi community and beyond when the Uniswap team decided to retrospectively reward Uniswap users and liquidity providers, as well as anyone who had interacted with the Uniswap smart contracts.
Over 60% of all UNI tokens are allocated to Uniswap community members, while the first phase of the liquidity mining program for UNI tokens is currently running for a further 34 days. The following pools will be rewarded with UNI rewards until November 17, 2020 –
- ETH / USDT
- ETH / USDC
- ETH / DAI
- ETH / WBTC
To learn more about how to become a liquidity provider for any of the pools above and earn UNI tokens, put your liquidity here.
With Dharma taking responsibility for creating the very first governance proposal and using Uniswap for trading on their mobile app, it is likely that the team will continue to be actively involved in shaping the future of Uniswap. What is interesting is that Dharma users who traded through the app still have not received their fair share of UNI tokens.
UNI’s retrospective airdrop made many users happy but excluded proxy contract users like those on Dharma and Matcha. To participate in the discussion on this matter, join the UNI Governance forums here.
Follow Dharma and Uniswap on Twitter to be kept up-to-date!
Business development and operations at TrustToken – TUSD. Jack is a startup generalist and DeFi enthusiast. Keep in touch with him by following @HHJackSun on Twitter.