The first-ever governance proposal voting for the largest decentralized finance (DeFi) protocol, Uniswap, is currently underway. The recently-submitted proposal seeks the reduction of the protocol’s governance thresholds. While the proposal seems necessary to most of the community members, it did face some criticisms. Some community members are afraid that the proposal might handover Uniswap to the token’s top holders.
That is, the governance members with a large number of the UNI token might end up gaining significant control of Uniswap if the proposal gets passed.
Dharma Uniswap Proposal
The proposal, submitted by a Uniswap governance community member, Dharma, and the votes are ongoing. According to reports, Dharma operates as an open-source lending project, which holds a large number of the Uniswap tokens. This sought to reduce the 10 million UNI tokens required for submitting a proposal to 0.3%. Also, Dharma proposed to reduce the quorum of 4% or 40 million UNI to 3%. The quorum is essential for passing a proposal into effect.
While most votes (over 30 million) are in favor of the proposal, some of the community members showed concern. They feared that if passed, the proposal might move a significant level of Uniswap governance to the token’s top holders. This boils on the fact that Dharma (the proposer) also holds a large amount of UNI. Reportedly, the protocol holds about 15 million UNI in one address.
Over 30 Million Supporting Votes
A Uniswap community member, David Felton, argued that the development might cause the top token holders to overtake the DEX. Felton opined that Dharma and Gauntlet, a blockchain simulation platform, make up 30 million UNI combined. For instance, that will be enough to reach the minimum quorum, said Felton.
“We strongly encourage all holders of Uni to vote ‘NO’ on this proposal to keep the quorum as the developers intended it.” There are only 625,000 votes against the proposal to change the DEX governance thresholds. In support of the proposal, however, DeFiPrime recommended that the voting cartel should change after the proposal is passed.
“I support Dharma’s proposal, but I think that the voting cartel they created to overcome Uniswap’s default threshold needs to be dissolved right after the proposal passes.”