Content Directory:

· Uniswap Foundation transferred over $40 million in tokens in the past week

· Previously submitted proposal for $60 million was rejected

· Will UNI holders foot the bill?

Uniswap Foundation transferred over $40 million worth of tokens in the past week

BlockBeats Reported on October 29th that, according to Lookonchain's monitoring, the Uniswap Foundation has transferred a total of 9.8 million UNI (approximately $40.66 million) in the past 6 days. Among them, 3.4 million UNI (approximately $14.1 million) were deposited into OKX; 3 million UNI (approximately $12.45 million) were deposited into Kraken; and 3.4 million UNI (approximately $14.1 million) were transferred to FalconX.

Someone in the community expressed the opinion that this move is to boost UNI prices, "Hayden not only wants to charge fees, but also dump (tokens)." However, some speculate that this large transfer of funds has a legitimate reason, such as fundraising for the foundation.

BlockBeats Report, on October 11th, the Uniswap Foundation initiated a proposal requesting the disbursement of the remaining $46.2 million from last year's initial financing to support the next two years of work. Of the total amount, $28.33 million will be used for grants, and $13.6 million (including $11.4 million and 508,000 UNI tokens) will be used for operations, with a 10% buffer added to mitigate price fluctuations.

Uniswap Foundation stated in the proposal that "Last year, the Uniswap governance community approved the creation and initial funding of the Uniswap Foundation. Today, we request the remaining initial funding ($46.2 million) to support our work for the next 2 years."

The Uniswap Foundation plans to continue developing the Hooks ecosystem through the end of 2023, and will provide a $3 million Fellowship program for DeFi research organization "TL;DR" over the next three years. They also plan to continue hosting IRL Delegate events and establish more digital communication channels. In 2024, the Uniswap Foundation plans to build an ecosystem of Hooks and application developers, continue building the Hooks platform, drive adoption of v4, expand the channels for contributing teams through funding, expand the support system for beneficiaries, and create incubation studios.

On October 25th, the Uniswap Foundation announced on social media that the governance community has approved continued funding for the Uniswap Foundation. The announcement was made on their official platform.

It can be seen from this that the large-scale transfer of UNI from the Uniswap Foundation to CEX last week may have been to raise funds for the foundation.

This $60 million proposal was rejected earlier

On September 27th, the Uniswap Foundation released a funding proposal requesting $62.37 million to support the development of the Uniswap ecosystem, including developer support and research funding.

Related reading: "Uniswap Foundation to raise $60 million for ecosystem development, what are the plans of "DEX planner"?"

"Last year, the Uniswap governance community approved $74 million in funding for the Uniswap Foundation. Today, the Uniswap Foundation has released a proposal to apply for the second batch of funding with a commitment of $74 million plus a 10% buffer, totaling $62.37 million. The proposal is planned to be voted on-chain on October 4th."

However, in the proposal discussion area at that time, someone questioned the appropriateness of the $60 million funding. The proposer, devinwalsh, stated that "the budget of $52.3 million is expected to last until 2027-2028."

Therefore, in the latest proposal, the requested amount has been reduced from 62.37 million US dollars to 46.20 million US dollars. A professional DAO governance company commented that "relatively speaking, 46.20 million US dollars is reasonable within two years."

UNI holders will foot the bill?

Last week, the Uniswap Foundation's multiple transfers of tokens to CEX still caused concerns in the community about the price of UNI tokens. According to TradingView data, the price trend of UNI has been declining since August.

On October 17th, when Uniswap announced the launch of front-end fees bypassing UNI holders, it caused concerns about the value of UNI in the community. UNI slightly rebounded afterwards, but with recent operations by the Uniswap Foundation, the price of UNI has dropped again.

The on-chain trader @_sisma_ commented on this round of selling, saying "Remember what happened a few weeks after Chainlink deposited a bunch of LINK into the exchange?" September 16th, according to The Data Nerd's data monitoring, Chainlink transferred 10 million LINK (worth about $62.4 million) to Binance. Subsequently, LINK rose 55% to $8.3.

However, Uniswap's large-scale transfer of coins has also raised concerns within the community. In the case of UNI tokens having no long-term empowerment, relying on selling tokens to raise funds for the foundation undoubtedly shifts the ecological operating costs to long-term holders of UNI tokens. Currently, the UNI price is still hovering around $4, and if the Uniswap Foundation decides to sell more than $40 million worth of UNI to CEX, will holders once again become the "scapegoats" forced to buy the bill?

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