Uniswap DAO Votes to Recall ₱2.56 billion ($42 million) in Governance Tokens
Uniswap DAO passed a proposal to recall 12.5 million UNI tokens worth ₱2.56 billion ($42 million) from delegates who received them through loans between 2022 and 2023. The vote secured 53% support with 46% abstaining and negligible opposition.
Key Takeaway
Uniswap ends its delegate loan program as voter participation surged enough to make loaned tokens unnecessary.
Uniswap Labs Governance Lead Erin Koen authored the proposal to pull back tokens originally loaned to the Uniswap Foundation and other delegates. She said the potential for misalignment between voting power and economic risk should not persist indefinitely when the original reason for the loan program is no longer a concern.
The recall comes after Uniswap's governance landscape shifted dramatically. Passed proposals have averaged roughly 75 million votes in turnout since DUNI was established, exceeding quorum by approximately 88%. The DAO now has 56 delegates with greater than 1 million UNI voting power.
U.S. Representative Sean Casten questioned Uniswap DAO's decentralization during a June hearing on the Clarity Act. That scrutiny added pressure to address governance structure issues. The DAO had already voted in December on a separate proposal to align incentives across Uniswap Labs, the Foundation, and the DAO itself.
Koen noted that Uniswap's governance environment looks very different today compared to when the Foundation received the initial loan in December 2022. The 12.5 million UNI tokens will return to the DAO treasury once delegates complete the return process by May 8.
This article was written based on reporting from Dlnews.
