Uniswap community fails to reach quorum in first-ever platform vote

The first-ever Uniswap vote on cutting the minimum threshold for submitting governance proposals failed to gather enough votes.

The vote closed on October 19 at 9:57 (GMT+3). To approve the proposal, it fell short by 403,241 of 40 million votes (1%).

Source: Uniswap.

To bring the proposal to a vote, participants must hold at least 1% of UNI tokens (10 million), including delegated tokens. For its approval, a quorum of 4% of token holders (40 million) is required.

The initiator of the vote is the Dharma landing platform, which proposed to reduce these requirements to 0.3% and 3% respectively.

The head of Dharma Nadav Hollander called the outcome of the vote ‘disappointing’.

“With an 85% turnout and overwhelming support, it was rejected,” he lamented.

A disappointing outcome that demonstrates the impetus for the proposal in the first-place:

Despite the vote having 85+% turnout (!), >95% support, with 272 voting FOR and 48 voting AGAINST, the vote still failed.

There is a silver lining, though… https://t.co/iXZgwxC5da

— Nadav from Dharma (@NadavAHollander) October 19, 2020

Hollander also saw a positive outcome for the community. He noted the growth of delegated UNI tokens from 47 million to 74 million.

The vote seems to have galvanized users to delegate in much higher numbers — we are now at 74m UNI delegated (as opposed to the paltry 47m delegated at time of the initial proposal)

This is a healthy outcome for Uniswap

— Nadav from Dharma (@NadavAHollander) October 19, 2020

In response to accusations of a hostile takeover attempt of Uniswap, the head of Dharma said that he is acting on the will of the delegates. He explained that if trust is abused, the votes he has received could be lost.

5/ If we behave in ways that are deleterious to Uniswap’s future success, we will lose the goodwill and trust we’ve built with our delegates and lose our votes — it’s that simple.

— Nadav from Dharma (@NadavAHollander) October 18, 2020

Stani Kulechov, head of Aave, agreed with these arguments. He delegated UNI tokens belonging to the lending protocol to Dharma.

“Reducing the degree of decentralization would be difficult in an ecosystem where that is placed at the forefront,” he explained.

Delegation is merely a mandate for a sentiment that exists. Creating less decentralized proposal would be difficult to pass in ecosystem where decentralization is the objective. I would bet that if exchanges start to vote on behalf their users, people will pull their funds out.

— stani.eth 👻 ETHOnline Citizen (@StaniKulechov) October 18, 2020

Earlier in Uniswap decentralization, Glassnode analysts doubted.

Some experts believe that governance token airdrops do not threaten the decentralization of DeFi projects.

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