Proposal to simplify voting on Uniswap’s future failures

In the letter

  • A vote to facilitate participation in Uniswap’s governance protocol has failed.
  • This is partly because it is too difficult to participate in Uniswap’s governance system.
  • The vote narrowly lost.

A vote to lower the entry barrier to the distribution of logs UniswapThe governance mechanism did not receive enough votes. Why? In part because the barrier to entry was too high.

The optional nearly passed. To approve the measure, Uniswap users staked 39,596,759 tokens on the application – just under the 40 million UNI tokens (about $ 130 million) required for approval. Users used 696,857 tokens against it.

The proposal aimed to reduce the number of tokens required for voting from 40 million UNI to 30 million UNI (approx. 90 million USD) and the number of tokens required for submitting proposals from 10 million UNI (approx Million USD) to 3 million UNI (approx. 90 million USD) to reduce about 9 million US dollars).

Most of the UNI proponents of the proposal came from Dharma, the company that made the proposal, and Gauntlet, the company that supported Dharma in its proposal.

“A disappointing result that shows the impetus for the proposal in the first place,” said Nadav Hollander, co-founder and CEO of Dharma. in a tweet today. On October 10, shortly after Hollander proposed the vote, he tweeted that the status quo “is the only result we’re mad at”.

Hollander said the outcome was still “healthy” for Uniswap as his proposal prompted the Uniswap community to increase the number of tokens they could use for voting by 57% from 47 million UNI to 74 million UNI. It is unclear whether these tokens were used to suppress or support a similar vote should Dharma suggest the same thing again.

The vote seems to have pushed users to delegate in much higher numbers – we are now at 74 million UNI delegates (as opposed to the paltry 47 million delegated at the time of the original proposal).

This is a healthy result for Uniswap

– Nadav from Dharma (@NadavAHollander) October 19, 2020

The vote sparked controversy in Uniswap’s fledgling government – the Protocol only switched on its governance mechanism last month.

Dharma would also like to use Uniswap’s treasury funds to send UNI to its own users as well as users of a handful of other apps that integrate Uniswap. Dharma and others claim they are entitled to the Uniswap air drop last month which rewarded all users of the protocol with a UNI token worth a few thousand dollars.

This is nonsense. The vote failed because users learned about the issue and decided not to vote for it. This is how tokenized governance should work. Votes shouldn’t just be cast by default.

– Chris Blec (@ChrisBlec) October 19, 2020

When Dharma proposed lowering the barrier to entry, the number of UNI tokens that could be used as voting chips was so small that if Dharma and Gauntlet had accepted his proposal, they would have got the network to accept the proposed proposal. Following his proposal, users made UNI more voting, removing concerns that Dharma might control the network.

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