The highly anticipated vote on UNI staking and delegation rewards, which was scheduled for May 31, has been postponed by the Uniswap Foundation. The decision to delay the vote was made after a stakeholder raised concerns, prompting the foundation to conduct a more thorough review of the proposal. This has resulted in a delay in the decision-making process.
The proposed vote would have brought the decentralized exchange closer to activating its “fee switch” and providing incentives to UNI tokenholders who staked and delegated their tokens. Erin Koen, the lead official overseeing the Uniswap DAO governance forum, emphasized the need for rigorous vetting of the proposed upgrade due to its sensitive and irreversible nature.
The Uniswap DAO has been exploring the possibility of enabling a fee switch for several years, but previous proposals have faced obstacles due to concerns about potential violations of U.S. securities laws. This cautious approach has led to a delayed progress on this issue.
The Uniswap Foundation’s decision to postpone the vote has received criticism from Dan Robinson, a partner at the crypto venture capital firm Paradigm. Robinson accused the foundation of giving in to pressure from an unnamed venture capital firm. Another user questioned the decentralized governance system’s credibility in light of the delay, suggesting that the actions of the unnamed VC firm had revealed its significant influence, undermining the decentralized values.
Before the postponement, the Uniswap Foundation introduced a proposal in February that aimed to address previous concerns and gained community support through an advisory vote. UNI holders were required to delegate their tokens on the platform before the voting went live to participate.
As of the end of the first quarter, the Uniswap Foundation disclosed holding $41.41 million in fiat and stablecoins, as well as 730,000 UNI tokens. During this period, the foundation committed $4.34 million in new grants and disbursed $2.79 million in previously committed grants.
Overall, the Uniswap Foundation’s decision to postpone the vote has sparked discussion and raised questions about the decentralized governance system. However, the foundation remains committed to conducting thorough vetting and ensuring the best possible outcome for the Uniswap community.