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Uniswap DAO considers taking back $42m in loaned UNI tokens
The DAO says governance participation has become more active since the 12.5 million UNI loans were made to the Uniswap Foundation and top delegates in 2022 to 2023.
Uniswap’s DAO is voting on a proposal to recall about $42 million worth of UNI governance tokens that it loaned to the Uniswap Foundation and several top delegates, according to DL News.
DL News reports that the DAO delegated 12.5 million UNI between 2022 and 2023 to boost governance participation, and the proposal’s author, Erin Koen, said the loaned tokens have served their purpose because Uniswap protocol governance is now more active.
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 designed to shield DAO members from personal liability for collective decisions.
The recall vote comes amid scrutiny of Uniswap’s governance structure, with critics arguing that the Uniswap Foundation may hold outsized influence and that some decision-making happens with limited community input, while large token holders and venture capital firms can dominate voting power.