Uniswap DAO Proposal to Reclaim 42 Million USD in UNI Delegated Tokens, Voting Ends This Week

Odaily News Uniswap DAO is voting on a proposal to reclaim approximately 12.5 million UNI (about 42 million USD) previously lent to delegates and the foundation. The vote will conclude on May 8th, with approximately 53% in favor, 46% abstaining, and very few opposing votes.

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

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

Furthermore, the Uniswap ecosystem is also advancing reforms including fee mechanisms, token buybacks and burns, and governance structure optimization to further enhance governance transparency and decentralization.