Uniswap DAO Moves Forward with $113M Treasury Delegation Program

The Uniswap DAO has decided to move forward with its treasury delegation program, which could allocate up to 18 million UNI tokens — valued at around $113.4 million — to chosen delegates.

This decision follows a preliminary governance vote that closed on Tuesday. Though the proposal received tentative approval, it still needs to go through an on-chain vote for final confirmation.

This isn’t Uniswap’s first foray into delegation funding. Back in December 2023, the DAO launched the initial phase of its treasury delegation initiative, aimed at empowering “active but underrepresented delegates” who vote on behalf of UNI token holders. The goal was to enhance governance participation by providing incentives to those actively engaged but lacking sufficient support.

According to the proposal put forth by Tane, a delegate platform, the first round of delegation funding played a crucial role in maintaining healthy governance. Data from Tane indicated that once the program began, delegate participation improved significantly, leading to a more robust DAO voting environment.

If the new round of funding gets the final go-ahead, approximately 12 delegates will each receive 1 million UNI tokens to encourage ongoing involvement. Additionally, “top tier” delegates — those who have maintained at least an 80% voting rate over the last three months — will be granted another 1 million tokens as a performance-based reward.

Despite the positive outcome of the initial vote, the Uniswap community remains somewhat divided. About 60% of voting power supported the program, while nearly 30% chose to abstain. Tane’s proposal suggests monitoring the program’s success on a rolling three-month basis to ensure it continues to meet governance goals.

This latest push for delegate funding comes after Uniswap’s controversial decision to allocate $165.5 million to the Uniswap Foundation. That funding will support the non-profit’s operations and new initiatives like Unichain and Uniswap v4 over the next two years, sparking ongoing debates within the community.

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Alexander Stefanov

Reporter at CoinsPress

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