There could be a new $74 million foundation to fund the world’s largest decentralised exchange if two community members’ fresh proposal passes a vote later this month.
For now, the Uniswap Labs community is debating a new plan to create an American Uniswap Foundation, but it will cost $74 million.
Many in the community have praised the foundation’s plans to support and develop the Uniswap ecosystem, but others have objected to the proposal’s high cost.
Foundation’s Primary Objective
Devin Walsh, Uniswap Labs’ former chief of staff, and Kenneth Ng, Uniswap grant programme lead, presented the proposal on Friday, emphasising that the foundation’s main goal is to “promote the Protocol’s decentralised growth, rejuvenate governance, and serve as a Protocol champion,” according to Walsh.
Walsh will serve as the executive director of the Uniswap Foundation (UF), while Ng will be in charge of day-to-day operations.
Walsh has requested $74 million in Uniswap (UNI) over the next three years to realise her goal, with $60 million going to its own Uniswap Grant Program (UGP) and another $14 million going to an “operational budget” to build out a team of 12.
Uniswap is the Biggest DEX in the World
According to trade volume, Uniswap is the world’s largest DEX. With a 24-hour volume of $793.8 billion, according to CoinGecko, Uniswap v3, the latest edition of the decentralised exchange (DEX), has caught up to Huobi Global and KuCoin, both of which are CEXs.
Hayden Adams, the creator of Uniswap, tweeted on Thursday that he was happy about the company’s latest proposition. In his final words, “After this passes, the Foundation will be yet another team working towards a future where the Protocol does not just survive – it flourishes!” Adams looked sure that the proposal would succeed.
A substantial number of people in the Uniswap region disagree with Adams and other members of his community who believe the proposal is expensive, despite their support for it.
“The $60 million for the UGP is foolish at this phase,” Cinneamhain Ventures partner Adam Cochran wrote in a tweet on Thursday.
For example, according to Cochran, the $7 million in grants previously given out by the current UGP were used for “underwhelming” causes. A few worthwhile enterprises have been invested in by the UGP, but “I don’t think the current performance supports giving us $60M Plus $14M to manage it for three years,” as he stated in his conclusion.
The Strategy was “Fluffy”
Dark Forest co-creator Scott Sunarto said the UF’s aims aligned with the protocol’s growth potential, but the plan had too much “fluff.” He proposed UF focus on “protocol expansion and R&D.”
Snapshot government will hold a final vote on the idea on Aug. 8 if a current straw poll is successful.
According to CoinGecko, UNI is up 1.4 percent in the last 24 hours, trading at $9.04.