- The Uniswap DAO proactively votes on a resolution to allocate UNI tokens held by the Uniswap Foundation to delegates, aiming to boost participation rates.
- The proposal, evolving to select seven delegates for 10 million UNI voting rights, garners broad support with over 17 million UNI token holders expressing approval.
In a proactive move to address low participation rates, the Uniswap DAO recently voted on a resolution to allocate UNI tokens held by the Uniswap Foundation to underrepresented delegates who maintain an 80 percent participation rate.
Originally targeting the distribution of 2.5 million UNI to four new delegates, the proposal evolved through discussions, ultimately selecting seven delegates to receive 10 million UNI voting rights. The decision garnered widespread support, with approximately 18.5 million UNI token holders participating, and over 17 million expressing approval. The next step involves the on-chain execution of the proposal by UNI delegates.
This initiative comes amid a period of decreased activity in DAO governance structures, a trend observed during the extended bear market. The outcomes of the Uniswap DAO vote may signal a potential resurgence of interest in the crypto space.
Doo Wan Nam, COO of StableLab, a company specializing in DAO services and products, noted the positive aspect of electing more delegates than initially planned. He emphasized the broad support for the vote, even from larger delegates not directly benefiting from the outcome, highlighting the atypical unity observed in DAO decision-making.
Uniswap, a leading decentralized exchange (DEX), has been contending with a sustained decline in governance participation, experiencing a notable decrease in the number of delegates engaging in proposal voting toward the end of 2022 and throughout the current year.
Courtesy: Dune Analytics
Uniswap’s Recent Challenges and DAOs
In a recent blog post, Doo highlighted the lackluster engagement rates among delegates, ranging from 0-10 percent to 50 percent, underscoring the broader challenge faced by DAOs during the extended bear market. Delegates, irrespective of their size, are grappling with low participation, impacting the effectiveness of governance processes.
Doo emphasized the crucial role of proactive delegates in maintaining a healthy governance environment, where they wield significant voting power to prevent malicious votes and meet quorum requirements. The prolonged bear market has taken a toll on DAOs across the crypto space, and Uniswap’s DAO is no exception.
Despite Uniswap’s noteworthy developments this year, including the launch of Uniswap V4 and the introduction of its Android wallet, the platform continues to struggle with community engagement. Doo acknowledged the multifaceted nature of Uniswap’s downtrend, attributing it, in part, to the platform’s rapid growth. As organizations like Uniswap expand, the increasing volume of updates and topics to follow can overwhelm participants, leading to reduced time and resources for engagement.
UNI Price Action
Since April 2022, the UNI price has consistently traded above a crucial horizontal support area while adhering to a descending resistance trend line. A notable rejection occurred in July 2023, prompting a retest of the long-term support in October. However, since this retest, the UNI price has shown an upward trajectory. At press time, Uniswap (UNI) is trading 6 percent down at a price of $5.91.
In a significant development last week, the altcoin successfully breached the descending resistance trend line that had been in place for an impressive 480 days. Notably, the weekly Relative Strength Index (RSI) exhibited a bullish divergence prior to this breakout.
X platform, known for insights from cryptocurrency traders and analysts, is buzzing with a bullish outlook for the future UNI price trend. RektCapital, a prominent figure in the crypto space, asserts that the current price action indicates a breakout from a long-term structure, contributing to the optimistic sentiment surrounding UNI.
Recommended for you
• Revealing the Top Altcoin Trio: Solana (SOL), Ripple (XRP), Meme Moguls (MGLS) Set To Ignite 2024’s Crypto Craze• How Economic Change in China Could Propel BTC to New Prices• ARK Invest Diversifies Portfolio: Sells Coinbase Shares and Invests in Robinhood and SoFi
$UNI
UniSwap is on the cusp of a breakout from this macro market structure
Needs to break the top of this pattern and reclaim it as support to enter a new macro uptrend#UNI #Crypto #Uniswap pic.twitter.com/69vaJhXarA
— Rekt Capital (@rektcapital) November 26, 2023
