Earlier today, the first governance vote on Uniswap was held. The vote finished with almost 39.6 million UNI in favour, compared to nearly 700,000 opposed. The vote was described by DeFi blogger Danger Zhang (‘@safetythird’) as the “DeFi equivalent of winning the common vote while losing the electoral college.”
Despite the initiative receiving massive support from 98 percent of the votes cast, the first Decentralized Exchange (DEX) Governance Vote on Uniswap ended in defeat.
This is the DeFi equivalent of winning the popular vote but losing the electoral college. https://t.co/0V9rF4NqZH
— 𝕯𝖆𝖓𝖌𝖊𝖗 (@safetyth1rd) October 19, 2020
Reaching a Quorum for UNI
The proposal ironically aimed to minimize the amount of tokens required for initiatives to be submitted and passed for Uniswap governance. The vote was proposed by Dharma, open-source lending protocol and leading UNI token holder.
Since the vote did not pass, the minimum amount of votes required to pass a Uniswap governance proposal will stay at 40 million UNI. Dharma’s prosposal of 3 million UNI to pass a vote was not successful.
Critics pointed out that if it were passed, Dharma and blockchain simulation platform Gauntlet would have almost the amount of votes needed to automatically reach a quorum.
Specifically, Dharma itself owns 15 million UNI in one address.
The UNI Token’s Total Allocation
1 billion UNI have been minted at genesis and will enter circulation over the course of 4 years. The initial four year allocation is as follows:
60.00% to Uniswap community members 600,000,000 UNI
21.266% to team members and future employees with 4-year vesting 212,660,000 UNI
18.044% to investors with 4-year vesting 180,440,000 UNI
0.69% to advisors with 4-year vesting 6,900,000 UNI
A perpetual inflation rate of 2% per year will start after 4 years, ensuring continued participation and contribution to Uniswap at the expense of passive UNI holders.