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Uniswap DAO considers pulling back $42m in UNI tokens from delegates
The DAO says it loaned 12.5 million UNI in 2022 and 2023 to increase governance participation, and now argues governance activity has become more active.
Uniswap DAO is voting on a proposal to take back about $42 million worth of UNI tokens that were loaned to the Uniswap Foundation and several top delegates. The cooperative previously delegated 12.5 million UNI between 2022 and 2023 as part of an effort to boost governance participation, according to DL News.
The proposal’s author, Erin Koen, said the protocol’s governance is now more active, suggesting the loaned tokens have served their purpose. The vote is also tied to ongoing scrutiny of Uniswap’s governance setup and whether it is as decentralized as it appears.
Criticism has focused on the role of the Uniswap Foundation, with some observers arguing it holds too much influence and may make key decisions unilaterally or advance proposals without sufficient community input. Others have also said that much of the DAO’s decision making happens behind the scenes, with large token holders and venture capital firms, including a16z crypto, dominating voting power.
DL News also notes that DUNI, Uniswap’s Decentralized Unincorporated Nonprofit Association, is the legal entity that recognizes onchain governance votes as legally binding and is intended to shield DAO members from personal liability tied to collective decisions. The story describes the token pullback as part of Uniswap Labs and the Uniswap Foundation’s broader response to calls for greater decentralization.