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Uniswap DAO considers pulling back $42 million in UNI from delegates
The DAO says it loaned 12.5 million UNI between 2022 and 2023 to boost governance participation, and now argues governance activity has increased.
Uniswap DAO is voting on a proposal to reclaim about $42 million worth of governance tokens that were loaned to the Uniswap Foundation and several top delegates, according to DL News.
Between 2022 and 2023, the decentralized autonomous organization loaned out 12.5 million UNI as part of an effort to increase participation in governance, the proposal’s author said.
DL News reports that Erin Koen, the governance lead at Uniswap Labs and the proposal’s author, said governance is now “much more active,” arguing the token loans have served their purpose.
The move comes as Uniswap Labs and the Uniswap Foundation work to respond to criticism that Uniswap’s governance system is less decentralized than it looks, including concerns about Foundation influence and how voting power can skew toward large token holders.