Uniswap "escaped from the dead", Governance Proposal No. 1 failed
Original title: "Uniswap "Near the Dead", the first governance proposal was rejected, only 400,000 UNI short of approval"
Original source: Babbitt
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On the morning of October 20th, Beijing time, the first Uniswap governance proposal failed because the required quorum (votes) was not reached. The final vote was 39,596,759 in favor and 696,857 against. That’s only about 400,000 shy of the quorum of votes (40 million) required for the proposal to pass.
The failure of the proposal is the success of the community
This voting proposal submitted by Dharma proposes to reduce the minimum number of UNI required to submit a Uniswap governance proposal from 10 million to 3 million. The quorum was lowered from 40 million to 30 million". This proposal has been rejected today (Defeated) due to lack of quorum.
This proposal is a controversial move by the Dharma founders, who claim that lower proposal and quorum thresholds will increase participation in Uniswap governance.
However, if this vote exceeds the quorum and is implemented, then Dharma, Gauntlet and Univalent will take full control of the governance of the Uniswap platform. As the largest holders of UNI, they will be able to put forward and vote on proposals they want according to their preferences.
This dashboard showing who voted and whether it was up or down.
This Dune Analytics Dashboard showing more detailed information about UNI principals. < br>
The quorum of 30 million votes is not a coincidence - Dharma has 30 million votes themselves, which means the proposal will allow them to pass anything they choose.
Although unlikely, since the identities of major UNI holders are public, reducing too many quorums could lead to malicious proposals like The DAO attack costing investors millions Case.
Many expressed concern that this vote could have a negative impact on the decentralization of the platform and the success of DeFi as a whole.
Currently, about $800 million in ETH is locked in UNI liquidity mining. If the liquidity mining ends as planned on Nov. 17, the $800 million will be withdrawn from Uniswap, which some fear will increase the likelihood of bad actors creating a crash in ethereum’s price.
Creating governance proposals is a fine art and all details should be considered by readers and proposers. If multiple changes are required, multiple proposals are required. Vote 1 by Dharma proposes two changes to the platform in one proposal, which is not good practice.
Changing the quorum should be one proposal, and changing the threshold for submitting proposals should be a separate proposal.
While the power imbalance resulting from the centralized distribution of UNI tokens is clearly a concern, Aave CEO Stani has a good point on token delegation.
That hasn't stopped many from viewing the vote as a failed attempt by one of its main competitors to take over the Uniswap platform.
The CEO of Dharma has responded on this topic.
People are skeptical about Dharma's motives for wanting to pass this vote as it is known that Dharma is not happy with the distribution of UNI tokens.
Dharma issued a clear opinion on UNI distribution, stating that its users were unfairly excluded from the UNI airdrop and that the UNI retroactive airdrop should be extended to use All wallets that interface with Uniswap, such as Dharma, Matcha, Paraswap, etc.
This additional means of distribution will not only benefit their users, but Dharma will greatly benefit from this move.
If Uniswap Vote 1 is passed, Dharma can not only make a proposal to further distribute UNI, but also vote to pass this proposal.
This is a clear example of the potential impact on governance and the power that holding a large number of governance tokens represents.
Groups such as Penguin aim to protect the decentralization and sovereignty of Uniswap by implementing autonomy proposals similar to those used in Compound.
Acquiring autonomous proposals will somewhat prevent full control of power in the future, as community members will be able to pool their voting power and easily create formal proposals.
Currently, even well-known groups or individuals may struggle to raise enough UNI to create a proposal, so autonomous proposals are critical to the continued decentralization of the platform important.
Another controversial point of this first release of the Uniswap governance proposal is that many users are unable to participate in voting due to the following restrictions.
Only UNI delegated to itself or to another address prior to block 11042288 is eligible to vote.
The rule requires anyone wishing to vote to delegate their UNI to him ahead of time before a proposal is made, but this is an unnecessary restriction that seems to only Proposal parties benefit, while anyone who disapproves or is unprepared is penalized.
Snapshotting the delegating party in this way is clearly an oversight; at the time of the proposal launch, only 48 million UNI delegates were delegated and passed the required number of votes With a quorum of at least 40 million UNI, we can see that there are still some nascent issues with Uniswap's governance.
Today's results came as a relief to many. Although the vote didn't pass, it seemed like a good learning opportunity, and perhaps a good warning of what could happen if bad actors managed to take control of the platform.
We may never know if Dharma really wants to take advantage of this opportunity in a dishonest way, or maybe they just want to provide better benefits for users. ..
Governance is power, and the actions of those in a position to manipulate popular platforms affect us all.
Whatever your opinion on Dharma or the UNI token, it can be argued that all of this is the result of flawed issuance and initial governance rules put in place by Uniswap.
We should all pay close attention to any new proposals and give full consideration to the motivations of those responsible for their creation.
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