This coming October 19th will be the culmination of the very first Uniswap community vote. Today, up to the aforementioned date, whether to reduce the thresholds needed in order to submit governance quorums and proposals or not will be voted on by the platform’s community.
Uniswap and its troubled governance framework
Despite the ongoing dominance of Uniswap in the DeFi sector, many still argue that its current governance framework is extremely flawed and should be reorganized. This is evidenced by the slew of discussions and arguments concerning the very topic popping up these past few weeks.
As it currently stands, Uniswap’s governance requires 1% of the total delegated UNI supply just for interested parties to submit their proposals. All the while, a 4% quorum is needed to submit a single affirmative vote. Now, considering that UNI currently has a supply of 1 billion, these present thresholds work out to between 10 million and 40 million UNIs. Converting that directly to the current market value of UNI ($3.30), it means that over $33 million and $132 million could potentially fall into staking alone. That’s quite an outrageous sum for a consensus.
Dharma, a DeFi protocol that provides new crypto players much friendlier access to the sector, sees this as a problem as well, prompting it to propose a particular solution. Dharma’s proposal, the one currently being voted on by the Uniswap community, suggests that the governance thresholds should be downscaled. 0.3% for the proposal and 3% for the quorums.
With only six days left to vote, the community is seemingly in agreement unison for the proposed reduction. 30,270,543 votes yes, while only 624,701 votes against it.