Despite 98% Support, The 1st Governance Vote For Decentralized Exchange Uniswap Failed
October 20, 2020 10:40 am
The first governance vote for decentralized exchange Uniswap has ended in defeat, despite the proposal attracting overwhelming support of 98% of votes cast. Notwithstanding, it fell roughly 1% short of the 40 million vote threshold needed for approval by the close of voting.
The poll ended today, with almost 39.6 million UNI staked in favour and roughly 700,000 opposed. DeFi blogger Danger ”Safetythird” Zhang described the vote as “the DeFi equivalent of winning the popular vote but losing the electoral college.”
Ironically, the proposal sought to lessen the number of tokens required to submit and pass proposals. It was set forward by open-source lending protocol and major UNI token holder, Dharma.
Currently, proposals can only be made by entities holding at least 1% of UNI’s circulating supply (10 million UNI, worth around $30 million), and demand to surpass 40 million total votes (worth $130 million) to pass. Dharma’s recommendations would lower the thresholds so holders of at least 3 million ($9 million) UNI could recommend upgrades, and only require 30 million supporting votes ($100 million) for a proposal to pass.
In response to the conclusion of votes, Nadav Hollander, CEO and co-founder of Dharma tweeted
“A disappointing outcome that demonstrates the impetus for the proposal in the first place: Despite the vote having 85+% turnout (!), >95% support, with 272 voting FOR and 48 votings AGAINST, the vote still failed.”
Though, Dharma’s proposal was not welcomed by all within the DeFi space, with critics pointing out that if it passed just two entities, Dharma and blockchain simulation platform Gauntlet would almost have the number of tokens needed to find quorum between them. Dharma currently controls 15 million UNI in a single address.