Uniswap DAO proposal to reclaim 42 million USD worth of UNI delegated tokens, voting ends this week

Odaily Odaily reports that the Uniswap DAO is voting on a proposal to reclaim approximately 12.5 million UNI (worth about 42 million USD) previously lent to delegates and foundations. The vote is set to conclude on May 8th, with current results showing approximately 53% in favor, 46% abstaining, and very few opposing votes.

Between 2022 and 2023, the DAO lent out these governance tokens to enhance governance participation. Uniswap Labs stated that governance activity has now significantly increased, with an average voting participation of approximately 75 million votes, indicating that the mechanism has achieved its intended effect.

This reclaim also aims to address incentive misalignment issues, where some delegates held significant voting power without having their own economic exposure. Concurrently, this move is seen as a response to external queries regarding the degree of governance decentralization.

Furthermore, the Uniswap ecosystem has recently advanced reforms including fee mechanisms, token buybacks and burns, and governance structure optimization, to further enhance governance transparency and decentralization.