Uniswap’s first governance proposal ended in failure, despite getting 98% of the votes

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Uniswap’s first governance proposal ended in failure, despite getting 98% of the votes

Although this proposal was overwhelmingly supported by 98% of the votes, the first governance vote of the decentralized exchange (DEX) Uniswap ended in failure. Nevertheless, it is still about 1% less than the threshold of 40 million votes required at the end of the voting.

The results of the voting earlier today showed that there were approximately 3,960 votes in favor and only approximately 700,000 votes against it. DeFi blogger Danger Zhang (“safetythird”) described the vote as “DeFi is equivalent to winning the general election but losing the Electoral College.”

Ironically, this proposal attempts to reduce the number of tokens required to submit and pass the proposal. It was proposed by the open source lending agreement and the main UNI token holder Dharma.

Currently, proposals can only be made by entities with at least 1% of the circulating supply of UNIs (10 million UNIs worth about 30 million U.S. dollars), and the total number of votes must exceed 40 million (worth 130 million U.S. dollars). Dharma’s proposal will lower the threshold, so holders with at least 3 million (9 million U.S. dollars) UNI can make upgrade proposals, and only 30 million support votes (100 million U.S. dollars) are required to pass the proposal.

In response to the voting results, Dharma CEO and co-founder Nadav Hollander said the voting results were “disappointing and showed the motivation of the proposal from the beginning.”

However, Dharma’s proposal is not welcomed by everyone in the DeFi field. Critics pointed out that it seems that only through the two entities of Dharma and the blockchain platform Gauntlet, there are almost enough tokens to reach their voting threshold. Dharma currently controls 15 million UNIs in one address.

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Some onlookers praised the success of the vote, and cryptocurrency developer Agustin Aguilar believes that the voter’s abstention should be interpreted as opposing the proposal:

It is impossible to know how many abstentions want to vote against, more than 50% of abstentions mean voting against, and many voters know this.